The invention relates to the technical field of underground water level measurement, in particular to a multifunctional glimmering underground water level monitoring device and a system thereof. The multifunctional glimmering underground water level monitoring device comprises a shell, a glimmering observer, a light source and an isolation piece, wherein the shell is arranged at a wellhead of an observation well to prevent outside light rays from entering the observation well; the glimmering observer is used for receiving light beams emitted by the light source and acquiring video information of a well wall; and the isolation piece is fixedly connected with the light source, floats in liquid in the observation well and is used for preventing the light beams of the light source from penetrating through an isolation layer. The multifunctional glimmering underground water level monitoring system comprises a remote terminal and the multifunctional glimmering underground water level monitoring device. The invention aims to provide the multifunctional glimmering underground water level monitoring device and system to solve the technical problems in the prior art that the existing liquid level monitoring device is large in error, the accuracy is affected by various factors such as the terrain, the stratum and the structure, and deformation of the well wall of the observation well cannot be monitored at the same time.