"Dan" (the literal meaning: returning to a natural and tranquil life) is one of the Chinese aesthetic categories that originated from the teaching of Taoist school. Later, the continuous influence of "Dan" gradually affected Chinese literature and arts, especially the theory of poems in the Sung Dynasty. It is thus clear that the value of literature and arts was then based on the idea of "Dan". The concept of "Dan" had an impact on the style of literature and arts, overshadowing the general superfine pursuit, namely "Li", at that time. "Dan" and "Li" can also be found in the theory of guqin music, as in His-Shan's Epithets on Qin Music written by Hsu Hong. He defined "Li" as "beauty"; "Li is derived from Gu (it literally means classical aroma) and Dan" which reflect not only the pursuit of musical aesthetics, but also the significance of the cultivation of life. It transforms the general cognitive perspective of "Li" from secular sensory beauty into spiritual aesthetic sensibility. This paper aims to discuss the significant meanings of "Li" as "beauty" and "Li is derived from Gu and Dan" in Hsu Hong's article. The researcher attempts to investigate the dialectical relationship between the aesthetic categories "Li" and "Dan". Furthermore, the author will reveal how the ancient guqin players combined these two opposite meanings "Li" and "Dan" into a dialectical whole through the cultivation of life and artistic techniques.