The invention discloses a virtual observation data generation method and device. The method comprises the steps that a base station network element in which a terminal is positioned is determined; a main reference base station, network element global common-view satellites and a reference satellite are determined in the base station network element according to the determined base station network element; double differential atmospheric parameters of a network element baseline in which the main reference base station is positioned are calculated so that the double differential atmospheric parameters of a virtual baseline are obtained through interpolation; and finally the double differential atmospheric parameters are converted into single differential atmospheric parameters through a single differential model, and carrier phase and pseudo-range virtual observation values corresponding to all systems and all frequency points are generated. With application of the method, the problem of redundant matrix transform caused by inconsistence generated by independent selection of all the baseline common-view satellites and the reference satellite in the network element can be solved. Besides, virtual reference base station observation data are constructed by adopting the single differential model equivalent to a double differential model so that result precision is guaranteed and model complexity is reduced.