The invention relates to a low-cost, low-density and high-CaO corundum castable and a preparation method thereof. The low-cost, low-density and high-CaO corundum castable is prepared by adding industrial alumina powder on the basis of the conventional common corundum castable. Volume expansion caused by calcium hexaluminate generated in the corundum castable is compensated by using volume contraction caused by phase change of industrial alumina at a high temperature, so that the contradiction between the adding amount of cement and the volume stability of the castable is solved successfully. The invented castable has low volume density and low thermal conductivity coefficient, energy loss caused by the application of the castable to a high-temperature kiln can be reduced, and the aim of saving energy is fulfilled. The industrial alumina powder is added, so that the cost of the castable is reduced in a certain degree, and the competitive advantage of the castable is enhanced. The corundum castable prepared with the method can be widely applied in the high-temperature industrial fields of steel and iron, non-ferrous metals, ceramics, petrifaction, and the like.