The invention relates to a gear type automobile steering gear lubricating grease composition and a preparation method thereof. The composition comprises the following components by weight: 7.0-8.5 parts of 12-hydroxystearic acid; 0.99-1.20 parts of lithium hydroxide; 11.0-22.1 parts of cycloalkane base oil; 65-70 parts of synthetic hydrocarbon base oil; 0.5-1.0 part of an antioxidant; 0.1-0.3 part of a metal passivator; 1.0-2.0 parts of a friction reducing agent; 0.3-0.5 part of a liquid extreme pressure agent; 3.0-5.0 parts of a solid extreme pressure agent; and 0.4-0.6 part of an antirust agent. The lubricating grease composition provided by the invention is suitable for lubrication of gear type automobile steering gears, bearings and other components, has low starting torque and operating torque at a temperature ranging from -40DEG C to -50DEG C, is low in cost, has excellent friction reduction and anti-vibration performance, and can reduce the fatigue wear of the gear steering gear and prolong the service life of parts.