The invention discloses a cultivation method and application of a healthy sex-limited silkworm (Bombyx mori) variety of yellow-green cocoon type. Cultivation of a sex-limited silkworm variety is successfully achieved herein for the first time; through application of the variety in silkworm egg rearing, it is possible to foresee the female ratio in advance, save labor for opening cocoons to identify moths, reduce the production cost of silkworm, ensure 100% of female-male separation rate, reduce the mass labor in the seed egg making step, greatly increase egg production and silkworm egg quality, and significantly increase labor efficiency and economic benefit accordingly; in the rearing of eggs for silk production, it is possible to reel silk separately for female and male cocoons; by separate use of the cocoons, it is possible to effectively increase the utilization value of raw silk, increase the yield and quality of raw silk for reeling mills, and significantly increase economic benefit. Yellow silk and green silk reeled with yellow-green cocoons of the healthy sex-limited silkworm variety are natural colored silks, which are better than white silk of domesticated silkworm in terms of moistness retention, warmth retention, antibiosis, oxidation resistance, ultraviolet blocking function and other functions and which feature naturalness, green, and low carbon; the development of the natural colored silks meet the current development concept of resource conservation and environmental friendliness.