The invention discloses a high-density and low-shrinkage rubber and plastic thermal insulation material and a preparation method thereof, and relates to the technical field of thermal insulation materials. The thermal insulation material includes 18 to 24 parts of rubber, 18 to 24 parts of a foaming agent, 68 to 82 parts of a smoke abatement flame retardant, 8 to 12 parts of carbon black, 13 to 17 parts of polyvinyl chloride resin, 1.3 to 1.7 parts of stearic acid, 1.3 to 1.7 parts of a dispersant, 1.3 to 1.7 parts of a calcium-zinc stabilizer, 28 to 32 parts of chlorinated paraffin oil, 5 to 8 parts of ointment, 14 to 17 parts of argil, 6 to 8 parts of silicon dioxide, 3.1 to 4.5 parts of an accelerant and 5 to 10 parts of glass fiber powder. By adding the glass fiber powder, the glass fibers can be arranged along the flowing direction in the processing process, so that the shrinkage of the rubber and plastic material is effectively reduced; besides, the argil, as a filler, can improve the mechanical properties of the rubber, improve the processability of the material, play a reinforcing role, reduce the supporting strength of the material to bubble walls, and reduce the problem of spouting or collapse.