The invention provides a functional lavender essence and a preparation method thereof. The functional lavender essence contains the following components in percentage by weight: 15-25% of lavender essential oil, 10-20% of broad-leaved lavender essential oil, 5-10% of mixed lavender essential oil, 1-2% of lavender clean oil, 0.5-1.5% of sage essential oil, 0.5-1% of folium eucalypti essential oil, 0.5-1% of Mentha piperita oil, 0.3-0.8% of patchouli oil, 1-2% of geranium oil, 0.3-0.6% of spearmint oil, 2-5% of lemon oil, 2-4% of bergamot oil, 20-30% of linalool, 20-30% of linalyl acetate, 0.5-1.5% of borneol, 0.1-0.5% of camphor and 0.4-0.8% of storax oil resin. The preparation method comprises the following steps: (1) proportioning; (2) stirring; (3) standing and filtering; (4) detecting; and (5) filling. The essence has the advantages of fresh and harmonious top note, high natural sensation, plump body aroma, obvious characteristic aroma and permanent basic note; and the essence has the curative effects of resisting dejection, resisting depression, soothing the nerves, lowering the blood pressure, diminish inflammation, alleviating pain, expelling worms and resisting bacteria, and can be widely used in daily use chemical products.