The invention discloses an underground power parameter collection system based on a single-chip microcomputer, and a control method. The system comprises an underground parameter collection unit and a ground parameter display unit, wherein the underground parameter collection unit is connected with an underground power system. The underground parameter collection unit comprises a processor, a parameter measurement unit, a system resetting unit, a parameter storage unit, a serial port communication unit, and a clock synchronization unit. The ground parameter display unit comprises a computer, a parameter display unit, a remote control unit, an internal memory management unit, and a status display unit. The beneficial effects of the invention are that through additionally arranging the parameter collection circuit in a power supply of an intelligent drilling tool, the system can monitor and record the working state of the underground power system and the voltage and current change conditions of all links when the underground power system has a fault; the system provides objective and true measurement data for the fault analysis and maintenance of the power system of the intelligent drilling tool; the system avoids hidden dangers (fault misjudgment and risk neglect) caused by only dependence on ground detection, and shortens the maintenance period of the intelligent drilling tool.