The invention relates to a Cinnamomum longepaniculatum leaf volatile oil emulsion in water, which his characterized by containing 1-35 parts by weight of Cinnamomum longepaniculatum leaf volatile oil, 1-10 parts by weight of emulsifying agent, 0.2-4 parts by weight of anti-freezing agent and 46-97.6 parts by weight of water, wherein the hydrophilic lipophilic balance value of the emulsifying agent is 10.0-16.0. The preparation method of the emulsion in water comprises the following steps of: firstly mixing the emulsifying agent and the co-emulsifier and stirring evenly, then, adding the Cinnamomum longepaniculatum leaf volatile oil and mixing evenly to prepare oil phase; mixing the anti-freezing agent and the water evenly to prepare aqueous phase; and then, gradually adding the aqueous phase into the oil phase while stirring at a high speed, and homogenizing the mixture to form a good Cinnamomum longepaniculatum leaf volatile oil emulsion in water. The Cinnamomum longepaniculatum leaf volatile oil emulsion in water provided by the invention has the advantages of low toxic and side effects, excellent clinical effect, high product stability, low production cost, simple preparation technology, strong operability, and so on, and can be used for treating animal dermatomycosis in veterinary clinic.