The invention discloses a lanthanum-magnesium-nickel-system AB3 type hydrogen-storage alloy containing elemental yttrium and a preparation process thereof. The hydrogen-storage alloy has a chemical formula of LaYbMg<c>Ca<d>Ni<9>, wherein a, b, c and d represent the atomic ratio of the elements of the alloy; a is more than 0 and no more than 0.65; b is more than 0 and no more than 0.65; c is more than 0; d is more than 0; and the sum of a, b, c and d is no less than 2.5 and no more than 3.5. The preparation process for the hydrogen-storage alloy comprises the following steps: weighing raw materials according to the ratio expressed in the chemical formula; putting metals difficult to volatilize, except elemental Mg and Ca, into a copper crucible, successively carrying out vacuum-pumping, introduction of helium until a pressure is 0.1 MPa, vacuum-pumping and introduction of helium until the pressure is 0.1 MPa, and repeating the successive operations three times for gas washing; turning on a power supply, baking raw materials for 1 min, then allowing the pressure of helium to be fixed at 0.1 MPa, carrying out heating and melting, and after all the metals are completely fused, carrying out cooling to 20 DEG C; and putting metal Mg and Ca easy to volatilize into the crucible, carrying out gas washing three times, baking the raw materials for 1 min and then carrying out melting under the condition of a helium pressure of 0.1 MPa. The hydrogen-storage alloy provided by the invention is low in cost and has high hydrogen absorption and desorption capacity, good activation performance, good cyclic stability and adjustable hydrogen absorption and desorption plateau pressure.