The invention discloses an integrated remote settlement observation station and an installation method thereof. The observation station comprises a lengthened measuring rod, an embedded supporting seat, a vertical rod, a fixing assembly, a measuring mechanism, a microprocessor and a wireless or wired communication module, wherein the bottom part of the lengthened measuring rod is directly or indirectly fixed on a bedrock layer; the embedded supporting seat is installed on a settlement layer; the vertical rod is inserted on the embedded supporting seat; the fixing assembly detachably and tightly connects the vertical rod and the embedded supporting seat; the measuring mechanism is used for measuring the relative displacement between the vertical rod and the lengthened measuring rod; the microprocessor is used for processing the data measured by the measuring mechanism; the wireless or wired communication module is used for remotely transmitting the data which are well processed by the microprocessor; the vertical rod has a hollow structure; and the upper end of the lengthened measuring rod is inserted in the vertical rod. The vertical rod and the embedded supporting seat are tightlyand firmly installed, the embedded supporting seat adopts embedded installation and is located at the inner side of the settlement layer, the settlement displacement of the settlement layer can be effectively reflected, and the measurement is efficient and accurate.