The invention discloses a sheath material for a signal controlling cable and a preparation method thereof. The sheath material comprises the following raw materials in parts by weight: 65-75 parts of low density polyethylene, 20-30 parts of SG-3 type polyvinyl chloride, 15-25 parts of styrene butadiene rubber, 5-10 parts of HIPS, 10-15 parts of nano calcium carbonate, 8-12 parts of nano kaolin, 5-10 parts of an ultrafine mica powder, 3-6 parts of naphthenic oil, 2-3 parts of sulfur, 1-2 parts of an accelerant M, 1-2 parts of zinc oxide, 3-4 parts of stearic acid, 4-8 parts of phenolic resin, 2-3 parts of an anti-aging agent 1010, 0.5-1 part of tert-butyl peroxybenzoate, 3-5 parts of oxidized polyethylene wax, 4-6 parts of rosin pentaerythrityl ester, 1-2 parts of an accelerant TMTD, 5-10 parts of diisobutyl phthalate, 8-12 parts of dioctyl nylon acid ester, 3-6 parts of a composite filler. The sheath material has good high and low temperature resistance and high tensile strength, also has excellent abrasion resistance, acid and alkali resistance, oil resistance, ozone aging resistance, and ultraviolet radiation resistance, extends the service life of a sheath to a great extent, and widens the application scope.