The invention provides an electrolyte for a dye-sensitized solar cell. The electrolyte comprises elementary substance iodine, iodized salt, a solvent, a chelating agent and a rare earth complex. The invention further provides a preparation method of the electrolyte. According to the electrolyte for the dye-sensitized solar cell, and the preparation method of the electrolyte, disclosed by the invention, by adding the chelating agent, the volatilization of the electrolyte is effectively restrained, an electrolyte system has flowability at 30-40 DEG C and is convenient to be filled in a cell and is converted to be a quasi solid at room temperature (25 DEG C) so that high electric conductivity is kept and the package of a cell is also easier, and the service life of the cell can be prolonged.