The invention relates to a surface acoustic wave radio-frequency label with the function of data error correction and an error correction method thereof in the technical field of radio-frequency identification. The surface acoustic wave radio-frequency label comprises a piezoelectric substrate, an interdigital transducer and reflecting gratings, wherein the piezoelectric substrate comprises a plurality of code blocks. The surface acoustic wave radio-frequency label is characterized in that the interdigital transducer is arranged at one end of the piezoelectric substrate, a data zone and an error correction checking zone are arranged on the other end of the piezoelectric substrate, the position zone of the reflecting grating positioned in the data zone and each bit of label number correspond to the number of a slot position in each code block, and the placed position of the reflecting grating in the error correction checking zone is calculated according to the encoding rule in the datazone and a Reed-Solomon encoding rule. The device has the functions of automatic checking and automatic error correction when decoding on the basis of a large encoding capacity. The invention can improve the decoding reliability and efficiency of the label and also provide a solution for multi-label collision prevention.