A rare earth ion doped silicate luminescence glass and preparation method thereof are provided. The luminescence glass is the material with the following formula: aM2O.bM′2O3.cSiO2.dRE2O3, wherein M is at least one of Na, K and Li, M′ is at least one of Y, Gd, La, Sc and Lu, RE is at least one of Ce, Tm, Tb, Ho, Dy, Er, Nd, Sm, Eu and Pr. The preparation method is: grinding the raw material until mixed uniformly, calcining the raw material at 1200-1500° C. for 1-5 h, cooling to room temperature, annealing at 600-1100° C. for 0.5-24 h, cooling to room temperature again, molding then getting the product. The performance of the product is stable. The product is homogenous, and the luminescence performance is good. The light transmittance is high. The process of the preparation method is simple and with low cost.