The invention discloses an anchor rod yield device with an alert function and an application method. The device consists of a yield system and a force measurement alert system; the yield system is composed of a variable cross-section upper tray, a yield annular spring and a lower tray, the yield annular spring is flat placed between the variable cross-section upper tray and the lower tray; the force measurement alert system consists of a force measurement alert scaleplate and a force measurement pointer, scales are arranged on the force measurement alert scaleplate and the force measurement alert scaleplate has ground colors, one end of the force measurement alert scaleplate is locked at the outer side of the yield annular spring with a lock ring, and the other end of the force measurement alert scaleplate is inserted into a round hole of the force measurement pointer. In the using process, as stresses on the anchor rod increase gradually, the yield annular spring expands outward, and linkage occurs on the force measurement alert scaleplate, therefore, stress number values of the anchor rod can be read according to the force measurement pointer, and safety storage conditions of the stresses of the anchor rod can be quickly determined according to the ground colors. By utilizing the deformation property of the yield annular spring, stress states of the anchor rod and amounts of deformation of the yield annular spring are associated, so as to both achieve the purpose of yielding, and quickly and intuitively determine stress states through observation. The anchor rod yield device is convenient to install and simple to operate, and can be widely applied to a construction site.