The invention relates to a low smoke halogen-free flame retardant sheath material for an optical fiber cable, and a preparation method thereof. Components of the material comprise a polyolefin base material, a flame retardant, an antioxidant, carbon black and an additive, wherein the carbon black is channel black, the base material is PE added with EVA, the antioxidant adopts a phenol antioxidant as a main antioxidant and adopts a phosphite antioxidant as a synergetic antioxidant, the additive comprises a coupling agent, a lubricant, a brightening agent, a lubricant and a synergistic flame retardant, and the flame retardant is a hydrated metal oxide. The preparation method comprises: making the carbon black into masterbatch; carrying out a modification treatment on the flame retardant with the coupling agent; mixing the carbon black masterbatch, the antioxidant, the brightening agent and an softener, and then adding the mixed material to the coupling agent-modified flame retardant to mix; adding the resulting mixture to a plastic extruder to carry out mastication extrusion to obtain the finished product. The flame retardant sheath material of the present invention has characteristics of low smoke, low toxicity, no halogen, environmental protection, low cost, and good comprehensive performance.