The invention relates to a preparation method for a multi-purpose iron oxide red water-based color paste. The basic formula of the water-based color paste involves: 10%-25% of water, 3%-10% of a moisturizing agent, 1.5%-3% of a wetting agent, 3%-7% of a dispersing agent, 0.3%-0.6% of an AMP-95 assistant, 40%-70% of iron oxide red powder, 0.3%-1.0% of a thickening anti-settling agent, 0.1%-0.3% of a fungicide, and 0.1%-0.5% of a defoaming agent. With the characteristics of good storage stability, high tinting strength, and good compatibility, etc., the iron oxide red water-based color paste has high performance, economical efficiency and environmental friendliness, is a highly cost-effective multi-purpose iron oxide red water-based color paste, and can be widely used in coloring of water-based architectural coatings, water-based wood coatings, water-based automobile coatings, water-based paper coatings, water-based plastic coatings, water-based glass coatings, water-based leather coatings and water-based ink, etc.