The invention relates to a zirconium oxide composite ceramic and a preparation method thereof. The zirconium oxide composite ceramic is prepared from, by mass, 65%-80% of a zirconium oxide matrix, 10%-30% of a conducting material and 2%-11% of a nanometer reinforcing material; the conducting material is selected from at least one of a non-ferrous metal oxide, a white metal oxide, a compound with a titanium structure and a compound with a spinel structure, wherein the non-ferrous metal oxide is selected from at least one of CuO, Cu2O, V2O5, NiO, MnO, MnO2, CoO, Co2O3, Co3O4, Fe2O3, FeO, Fe3O4 and Cr2O3, and the white oxide is selected from at least one of ZnO, SnO2 and TiO2; the compound with the titanium structure is selected from at least one of CaTiO3, BaTiO3, LaCrO3, LaSr(0.1)Cr(0.9)O3, SrTiO3 and LaFeO3, and the structural formula of the compound with the spinel structure is AB2O4, wherein A is selected from at least one of Mg, Fe, Zn and Mn, and B is selected from at least one of Al, Cr and Fe. The zirconium oxide composite ceramic is excellent in antistatic property and high in mechanical property.