The invention provides an insect-repelling waterborne wood coating. The insect-repelling waterborne wood coating is prepared from components in parts by weight as follows: 20-25 parts of a styrene-acrylic emulsion, 8-10 parts of an insect-repelling agent, 1-2 parts of a dispersant, 0.8-1.5 parts of a defoamer, 1-3 parts of a coalescing agent, 0.5-1.5 parts of benzophenone and 59-66 parts of water; the insect-repelling agent is chitosan with pyrethrin supported. A preparation method of the insect-repelling waterborne wood coating comprises steps as follows: pyrethrin is dissolved in ethanol, a pyrethrin-ethanol solution is prepared, chitosan is dissolved in a 3wt% acetic acid water solution, and a chitosan water solution is prepared, the pyrethrin-ethanol solution and the chitosan water solution are mixed uniformly, spray drying is performed, and the chitosan with pyrethrin supported is obtained. The provided insect-repelling waterborne wood coating adopts the chitosan with pyrethrin supported as the insect-repelling agent and has the characteristics of being low in toxicity, safe, efficient and high in stability, besides, pyrethrin has a slow release efficacy, and the insect-repelling time of the coating can be prolonged.