The application discloses a measure point device suitable for ground surface settlement of a shallow-buried tunnel and an observation method. The measure point device comprises an embedding portion, a bottom plate substrate, a connecting portion, a vertical ruler substrate and a water level, wherein the embedding portion is used for being embedded into a bed rock from the ground surface; the bottom plate substrate is fixedly connected to the top end of the embedding portion; the connecting portion is detachably connected to the bottom plate substrate; the vertical ruler substrate is provided with an upper surface for placing a vertical ruler and is connected to the connecting portion through a leveling device; and the water level is arranged on the vertical ruler substrate and is matched with the leveling device to work, so that the upper surface of the vertical ruler substrate is maintained horizontal. The precision of the measuring operation can be improved.