The invention discloses a self-adaptive binary tree multi-label conflict arbitration method used for a RFID system comprising a reader and at least two labels in the coverage area of the reader. The reader sends out an instruction and the labels execute corresponding operation after receiving the instruction. The labels are provided with four states, i.e. close, ready, ID and data exchanging and can adopt a counter and a random number generator to execute the state shifting according to the present time slot state to realize the binary tree method so as to avoid the conflict between labels. The storage of each label stores a priority number which can determine when the label can be communicated with the reader in a reading circle and the priority number in each reading circle can make self-adaptive adjustment according to the present time slot state so as to reduce conflict and idle time slot. The application of the invention to the RFID multi-label conflict can largely reduce conflictarbitration time and avoid the problems of label reading leakage and unlimited extension of the reading circle.