The invention discloses a wrapped type caterpillar band assembling and disassembling device and an assembling and disassembling method thereof. The wrapped type caterpillar band assembling and disassembling device comprises a lifting hydraulic rod, an operating frame, a pulling mechanism, a positioning clamping mechanism and a bolt assembling and disassembling mechanism; the pulling mechanism comprises a motor for loosening and tightening a steel rope through a rope reeling wheel and a buckle on the steel rope, in the installation process, the end of the steel rope penetrates through a caterpillar band groove in the end of a caterpillar band to be connected with the buckle, then the motor tightens the steel rope to pull the end of the caterpillar band, and the end of the steel rope is separated from the buckle after installation; the positioning clamping mechanism comprises a swing hydraulic rod for driving a clamping plate to swing, in the installation process, a lifting hydraulic roddrives the downward clamping plate to extend into the caterpillar band groove at the end of the caterpillar band, and then the swing hydraulic rod drives the clamping plate to swing upwards to cooperate with an operating frame to position and clamp the upper and lower sides of the end of the caterpillar band; and the bolt assembling and disassembling mechanism includes an in-and-out hydraulic rodwhich drives a bolt to come in and go out of a bolt hole through a clamp and a hydraulic wrench for assembling and disassembling a nut at the end of the bolt. The device can quickly complete assembling and disassembling of the wrapped type caterpillar band.