The invention relates to a composite light building block and a preparation method thereof. The standard is 60*15*25cm, and the weight of the building block is 18kg. The building block is prepared by the following materials by weight percent and the slurry comprises brine: 50wt% of industrial magnesium chloride hexahydrate, gas generation agent: 0.01wt% of hydrogen peroxide and calcium hypochlorite; light burnt powder: 25wt% of light burnt magnesium oxide 85 powder, foam stabilizer: 0.001wt% of sodium dodecyl benzene sulfonate, filler: 20wt% of expandable pearlite sand, an adjusting agent: the balance of sodium hydroxide or citric acid. The invention can improve the processing property, increases the slurry flowability, is easy to cast in forming, has short production period and low manufacturing cost, increases the activity, enhances the impermeability and post strength, reduces dry shrinkage, and prevents cracking. The composite light building block has the advantages of light weight, high strength, small volume density, low heat conduction coefficient, heat insulation, sound insulation, fire prevention, heat isolation, freezing and melting resistance, little dry shrinkage, and the like. By using the gas-added building block to replace the traditional bearing building block as the building wall filling material, the self weight of the building structure is decreased, the foundation burden is reduced, and the energy and material are saved.