Disclosed are a digital indicator and a capacitance compensation method for the function key of the indicator; the digital indicator comprises a magnetic field generation circuit, a microprocessor, a group of function key capacitors, a group of switches and a group of function key compensation capacitors; the microprocessor comprises a vibration circuit, a group of switch feet which can be used as switches, a group of detection feet which can detect the potential changes, and a readable and writable non-volatile memorizer; one end of each function key capacitor and one end of each function key compensation capacitor are connected with the switch feet of the microprocessor, while the other ends are in short connection; the non-volatile memorizer stores the compensation relationships between the function key capacitors and the function key compensation capacitors; the microprocessor detects the switching movement of the switches, controls the switching movements of the switch feet according to the compensation relationships, and controls the corresponding function key capacitors to be communicated with the function key compensation capacitors. The invention enables the frequency adjustment of the indicator to be improved as digital frequency adjustment so as to decrease the parallel-connected capacitors to reduce errors made by man-made judgment.