The invention relates to a device for embedding an optical fiber into a deep-drilled vertical hole and an installation method thereof. The device is characterized by comprising a traction unit, an optical fiber assembling unit and a control unit. The traction unit is composed of an electric telescopic rod and a cone-head cylinder; an electromagnetic relay is arranged at the bottom of the inner rodof the electric telescopic rod; and one row of barbs are arranged at each of the left side and the right side of the cone-head cylinder. The optical fiber assembling unit consists of a lower pulley,an iron ring, a universal joint, a steel wire, a bracket and an upper pulley; the lower pulley is fixed on the top of the iron ring; and the iron ring is fixed at the right of the top of the cone-headcylinder by the universal joint. The control unit includes a plugging port, a vertical screw rod, a measuring optical fiber, a fiber screw rod, a steel wire, a steel wire screw rod, an automatic gluing machine, an automatic cutting machine, an electrically-controlled stepless speed-change motor and a computer; and the control unit is connected with the computer by a data line. Therefore, an optical fiber can be buried into a deep-drilled vertical hole simply, conveniently, quickly, and effectively, thereby saving lots of time and manpower costs.