The invention discloses a preparation method of red mud iron reduction furnace slag light foamed ceramic and an iron reduction furnace. A red mud iron reduction furnace is characterized by comprising an iron reduction furnace 1, a melting bath 2, a furnace slag melting bath 3, a molten iron melting bath 4, a feeding machine 5, a molten iron channel 6, a molten iron inlet 7, a furnace slag melt outlet 8, a furnace slag melt channel 9, a furnace slag melt feeding hole 10, a foaming agent inlet 11, a stirring machine 12, a float glass kiln body 13, a foaming section 14, a foam stabilizing section 15 and an annealing section 16; red mud is taken as a main material, and green coke precious stone, waste glass dust, quartz sand, coal gangue and titanium dioxide are added; and the ceramic consists of the following components in percentage by weight: 35-82.5 percent of red mud, 3-15 percent of green coke precious stone, 3-10 percent of waste glass dust, 1-15 percent of quartz sand, 10-20 percent of coal gangue and 0.5-5 percent of titanium dioxide. Industrial waste is taken as a major raw material, so that production cost is reduced, environmental pollution is lowered, and economic efficiency and environmental friendliness are realized; waste can be recycled; and a prepared red mud iron reduction furnace slag light foamed ceramic tile has high strength, high heat preserving property and high decorating characteristic.