The invention provides alloy powder for gray pig iron laser cladding repair and a preparation method of the alloy powder. The alloy powder comprises the chemical components, by weight, 12% to 24% of Cu, 1.5% to 3.5% of C, 0.2% to 2.4% of Si, 0.01% to 0.05% of Al, 0.005% to 0.01% of Ba, 0.001% to 0.01% of Ca, 0.5% to 1.2% of Co, 0.0% to 0.04 % of Y2O3, 0.0% to 0.03% of La2O3, 0.0% to 0.04% of Ce and the balance Ni. According to the alloy powder, because alloy matrix strengthening elements, graphitizing-promoting elements and grain refinement grain boundary strengthening elements are added, and the percentages of the elements are adjusted, alloy acquires the excellent comprehensive performance, the alloy has both the appropriate hardness and the appropriate strength, the possibility of white cast tissue forming is reduced, shock resistance and fatigue resistance are improved, the crack resistance, the formability, the process stability and the component uniformity of the alloy powder in a laser cladding layer are improved, and an effective method convenient to use is provided for successive repair of gray pig iron parts.