We have investigated insulating properties of $SiO_2$ interlayer for the thin film strain gauge, which were prepared by RF magnetron sputtering method in various deposition conditions, such as Ar pressure, gas flow rates and sputtering gases. SEM, AFM and FT-IR techniques were used to analyze its structures and composition. As the Ar pressure and the flow rate increased, the insulating interlayer showed low insulating resistance due to its porous structure and defects. Oxygen deficiency in $SiO_2$ was decreased as fabricated by hydrogen reactive sputtering. We could enhance the surface mobility of sputtered adatoms by using Ar/$H_2$ sputtering gas and obtain a good surface roughness and insulating property. The optimum insulating resistance of 9.22 G$Omega$ was obtained in Ar/30% $H_2$ mixed gas, flow rate 10sccm, and 1mTorr.