The present disclosure discloses a double-speed electric winch and an operating method of the winch. The winch comprises two groups of planetary gears with different transmission ratios in a gearbox. The two groups of planetary gears have corresponding outer ring gears. The gearbox has a rotatable handle which has a locking head inserted in the gearbox. As the handle rotates, the locking head engages with the outer ring gears in different manners to provide a first rotating speed mode, a second rotating speed mode, and a disengaged mode.