This paper conducts a research on the wavelet construction and application of image edge detection. Taking the image edge detection algorithm based on wavelet modulus maxima as the research subject, this paper discusses the problem of dislocation phenomenon, threshold selection, multi-scale edge fusion and evaluation criterion in the algorithm, and proposes an improved self-adaptive hierarchical threshold algorithm based on information amount and vanishing moment. From the angle of wavelet symmetry, filter composition and vanishing moment, the influence of wavelet property on image edge detection is studied, and the construction requirements of wavelet filter banks for image edge detection are proposed. The constant-length compactly supported biorthogonal wavelet parameterized construction method is used to construct the biorthogonal wavelet featuring odd symmetry for high-pass decomposition filter and unidirectionality for filter sequence, and the improved algorithm of wavelet construction and threshold is applied to the simulation of image edge detection of concrete cracks in ultra-high arch dam.