A copper chromium zirconium alloy comprises, by weight, 0.7% to 2.0% of chromium, 0.05% to 0.3% of zirconium, 0.01% to 0.08% of magnesium, 0.01% to 0.1% of yttrium and the balance copper. The invention further provides a preparing method of the copper chromium zirconium alloy. The preparing method sequentially comprises the following steps that firstly, the copper, the chromium, the zirconium, the magnesium and the yttrium are prepared according to the proportion and are subject to vacuum purified smelting and flow dividing type casting, and a casting blank is prepared; secondly, the casting blank is subject to homogenization treatment and hot extrusion, and a sheared billet is prepared; thirdly, the sheared billet is subject to solid-solution treatment; fourthly, the sheared billet obtained after the solid-solution treatment is subject to cold deformation machining; and fifthly, a material obtained after cold deformation machining is subject to aging treatment, and the needed copper chromium zirconium alloy is obtained. The copper chromium zirconium alloy has the good comprehensive performance, the room temperature tensile strength of the copper chromium zirconium alloy is larger than 520 MPa, the room temperature elongation of the copper chromium zirconium alloy is larger than or equal to 22%, the room temperature electric conductivity of the copper chromium zirconium alloy is larger than or equal to 90%IACS, and the 350 DEG C high-temperature tensile strength of the copper chromium zirconium alloy is larger than 390 MPa.