The invention provides an iron ore pellet and a preparation method thereof. The iron ore pellet consists of an inner core and an outer shell, the inner core is prepared from vanadium-titanium magnetite concentrate with the TFe content being 48-52 wt%, and the outer shell is prepared from magnetite concentrate with the TFe content being 61-65 wt%. The vanadium-titanium magnetite concentrate with the TFe content being 48-52 wt% and the magnetite concentrate with the TFe content being 61-65 wt% are weighed and proportioned with bentonite according to the proportion of 95-99.5% to 5-0.5%, the material ratio of the inner core to the outer shell is 1:9-4:6, a green pellet composed of the inner core and the outer shell is prepared by adopting a conventional green pellet preparation method and then is roasted, the roasting temperature is controlled to be 1150-1300 DEG C, and the finished iron ore pellet is obtained after roasting. According to the iron ore pellet and the preparation method thereof, under the conditions that any equipment investment is not increased and the original process is not changed basically, the vanadium-titanium-containing magnetite pellet meeting the compressive strength requirement is produced, the roasting temperature of the pellet can be effectively reduced, the roasting time can be shortened, and the fuel consumption can be reduced.