The mural is across the street from the comedy club and is believed to be the largest mural in the country dedicated to the Black Lives Matter movement.
"This mural is an important avenue for Black artists to present societal challenges in a public and impactful way through the lens of their experiences," said Jamie Masada, the owner of the Laugh Factory.
The mural features protesters holding up pictures of George Floyd and Breonna Taylor. Masada says he hopes the artwork inspires change.
WATCH: 'Collective action can lead to change': UCLA professor discusses protests
"The artwork inspires us to support accountability and meaningful change as we work together to create pathways that heal our nation," Masada said.
In recent weeks, the Laugh Factory has become a staging area for several Black Lives Matter and Black Women Lead events after nationwide protests sparked by the death of George Floyd.
Los Angeles Fourth District Councilman David Ryu and the Laugh Factory commissioned five Black artists - Alexandra Allie Belisle, Amanda Ferrell Hale, Noah Humes, PeQue Brown and Shplinton - for the artwork.
"This is the largest scale that I've ever worked at and for the greatest cause," Humes said.
An organization called Arts Bridging the Gap brought together the artists, who designed their portion of the mural in a matter of days.
The unveiling comes on the same day as #BlackoutDay2020. Organizers of the economic protest ask Black Americans not to spend any money, and those who have to buy are encouraged to buy from Black-owned businesses.
City News Service contributed to this report.