The invention relates to a method for preparing an environment-friendly interior dry powder coating from blast furnace slag micro powder serving as a main raw material, and belongs to the technical fields of chemical building materials and comprehensive utilization of solid wastes. The environment-friendly interior dry powder coating is prepared from the following raw materials in percentage by weight: 80 to 90 percent of the blast furnace slag micro powder, 3 to 18 percent of titanium pigment, 3 to 8 percent of ash calcium powder, 3 to 6 percent of redispersible emulsion powder, 0.2 to 0.6 percent of water-retaining agent and 0.05 to 0.2 percent of defoaming agent. The method comprises the following steps: weighing and mixing the raw materials in percentage by weight; and putting the mixed material into a stirrer, fully stirring for 15 minutes, and fully mixing uniformly to obtain the environment-friendly interior dry powder coating. When used, the environment-friendly interior dry powder coating is blended with a proper amount of water fully, and then the mixture can be coated and puttied on wall surfaces. The coating has good construction performance and operational effectiveness. The coating has strong bonding power, and washing, alkali and water resistance; and the coated film is difficult to crack. Moreover, the coating has no organic volatile matters, is nontoxic and tasteless, and has no harm to human bodies.