A data storage device and method for auto-peeling of surveillance video content to increase archival storage is provided. In one embodiment, a data storage device is provided comprising a memory and a controller. The controller is configured to determine that available storage space in the memory is less than a threshold; in response to determining that the available storage space in the memory is less than the threshold: read a video file from the memory; and re-encode the video file to decrease a size of the video file, wherein re-encoding the video file increases available storage space in the memory without deleting the video file. Other embodiments are provided.