The invention discloses a water-soluble acrylic resin coating and a preparation method thereof. The preparation method comprises the following steps of weighting hydroxyethyl methacrylate, chlorinated polyethylene, methyl methacrylate, butyl methacrylate, monobutyl maleate, butyl acrylate, styrene, diethylaminoethyl methacrylate, azobisisobutyronitrile, methylbenzene, a crosslinking agent, hexahydrophthalic anhydride, methanol 1 and a plasticizer; adding hydroxyethyl methacrylate, chlorinated polyethylene, methyl methacrylate and butyl methacrylate into a reaction kettle; stirring while heating; then, adding styrene, methanol and azobisisobutyronitrile; recovering methanol; adding monobutyl maleate and methylbenzene; adding the rest raw materials, and grinding to obtain the water-soluble acrylic resin coating. The water-soluble acrylic resin coating has the viscosity of 60-80s, the adhesive force of 1-2 grades and the hardness of 0.55-0.75; the impact strength is 45-65kg / cm, the tack-free time is 30-50min, and the solid drying time is 4-6h; a coated film has no bubbling and winkling phenomena after being soaked in a saturated calcium hydroxide solution for 7-14d and has no falling and bubbling phenomena after being soaked in water for 15-30d; the water-soluble acrylic resin coating has the flexibility of 2-4mm and can be widely produced and used for continuously replacing the traditional material.