A reflective display and a preparation method thereof are disclosed. The reflective display includes: a first substrate and a second substrate, a first electrode provided on the first substrate a transparent dielectric layer provided on a side of the first substrate, which side faces the second substrate, a second electrode provided on the second substrate, and liquid crystal located between the first substrate and the second substrate; a refractive index of the liquid crystal changes under action of an electric field formed by the first electrode and the second electrode so that the refractive index of the liquid crystal is the same as or substantially the same as a refractive index of the transparent dielectric layer, or less than the refractive index of the transparent dielectric layer.