The invention belongs to the field of metal material magnesium alloys, and discloses a low-cost high-strength high-modulus cast magnesium alloy and a preparation method thereof. According to the total weight of the cast magnesium alloy, the cast magnesium alloy comprises 3.0%-10.0% of Zn, 2%-10.0% of Li, 1%-6.0% of Al, 0.01%-3.0% of Mn, 0.01%-1.0% of Cu and an impurity element Filt. 0.005%, the impurity element of which is Nilt; 0.002%, and the balance of Mg. According to the preparation method, Zn, Li, Al, Cu, Mn and other rare-earth-free elements are adopted, a novel design method of the double-configuration high-modulus-nanophase reinforced high-strength high-modulus magnesium alloy is utilized, the modulus of the alloy is improved through micron-scale primary high-modulus second phase precipitation separated out of the alloy, a nanoscale secondary precipitation strengthening phase is regulated and controlled through a subsequent heat treatment process, the strength and toughness of the alloy are guaranteed, and the high-strength high-modulus magnesium alloy is obtained. Therefore, cooperative control of low cost, high modulus and high strength and toughness is achieved.