Optical spectra of a double-layered perovskite ruthenate Ca3Ru2O7 show a pseudogap opening around 200 cm(-1) below 50 K, which is attributable to the partial k-space gap opening due to the density wave instability. Unlike most other density wave materials, Ca3Ru2O7 has spectral weight redistributions, not near the energy gap region, but at a much higher energy region around 800 cm(-1). As a possible origin of these intriguing features, we discuss the orbital flip excitation in the density wave ground state.