The invention provides brand-new high-purity high-strength high-toughness zirconium oxide and tungsten disulfide compound self-lubricating ceramic and a preparation method thereof. The preparation method comprises the steps of taking nanoscale yttria-stabilized zirconia powder and nanoscale tungsten disulfide, utilizing a high-energy ball milling method to mix and mechanically alloy the powder, adding a dispersing agent, a binder and deionized water, ball milling into slurry, then granulating through a centrifugal atomizing granulating method, compression moulding through cold isostatic pressing and finally obtaining the compound self-lubricating ceramic through a hot isostatic pressing sintering method. The high-purity high-strength high-toughness zirconium oxide and tungsten disulfide compound self-lubricating ceramic disclosed by the invention has the advantages of high compactness, high strength and good lubrication. The preparation method disclosed by the invention has the advantages of simple technology and equipment, low cost, high yield, low energy consumption and high production efficiency and is suitable for industrial production; furthermore, the zirconium oxide and tungsten disulfide compound self-lubricating ceramic with stable quality, small friction coefficient and fine and controllable crystal particle is obtained; the preparation method disclosed by the invention has no environmental pollution in the process and is the preparation method of novel high-purity high-strength high-toughness zirconium oxide and tungsten disulfide compound self-lubricating ceramic with low cost and stable quality.