The invention discloses a boron mud/loess ceramsite concrete hollow insulation block and a preparation method thereof. The block is prepared from the following raw materials by weight: 125 to 145 parts of ordinary Portland cement grade 42.5, 540 to 580 parts of stone chippings, 28 to 32 parts of boron mud, 12 to 16 parts of loess, 8 to 12 parts of paper pulp waste liquid, 3 to 5 parts of straw ash, 4 to 6 parts of light calcium carbonate, 20 to 30 parts of soluble glass, 8 to 12 parts of straw powder, 3 to 4 parts of a foaming agent, 1 to 1.5 parts of foots, 2 to 3 parts of an asbestos fiber, 0.6 to 1.2 parts of a redispersible latex powder and 160 to 210 parts of water. The boron mud/loess ceramsite concrete hollow insulation block produced in the invention has the advantages of high strength, low density, good heat insulation performance, good impact resistance, small possibility of water absorption, fire resistance, flame retardation, good weatherability, environment-friendliness, energy conservation and the like and has great market space and development prospects in the application field of building energy conservation in China.