Lee was born in Chicago, but as a child relocated to Detroit with her mother. After a few years, she was adopted by Rev. E. Allan Rundless, who had previously been a member of the Soul Stirrers, and his wife Ernestine, who led a gospel group, The Meditation Singers. Featuring Della Reese, they were the first Detroit gospel group to perform with instrumental backing. The group recorded on the Specialty label in the mid 1950s, appeared on the LP Della Reese Presents The Meditation Singers in 1958, and in the early 1960s recorded for Checker Records.

As Laura Lee Rundless, she replaced Reese in The Meditation Singers in 1956, and over the next few years toured widely around the country. In 1965, as Laura Lee, she launched her secular solo career as an R&B singer in clubs in Detroit, although she also continued to record occasionally with The Meditation Singers. She first recorded solo for Ric-Tic Records in 1966, with "To Win Your Heart". The following year she won a recording contract with Chess Records, and travelled to Rick Hall’s FAME Studios in Muscle Shoals to record "Dirty Man", which became a # 13 R&B hit (also # 68 pop). She stayed with Chess until 1969, touring and also recording "Up Tight Good Man" and "As Long As I Got You".

Lee then moved to Holland, Dozier and Holland’s newly established Hot Wax label. One of her first recordings for Hot Wax, "Women’s Love Rights", became one of her biggest hits, reaching # 11 on the R&B chart in 1971 and # 36 pop. In 1972, "Rip Off" reached # 3 on the R&B chart, but only # 68 pop. She also recorded an album, Two Sides of Laura Lee, while in a relationship with singer Al Green.

Lee left Invictus / Hot Wax in 1975 and signed with Ariola Records, but became seriously ill shortly afterwards and retired from the music industry for several years. She returned in 1983 with a gospel album, Jesus Is The Light Of My Life, on which she worked with Al Green. By 1990 she was recovered from illness, and had been ordained as a minister. She has continued recording music to this day.

A Swedish garage rock band did an unexpected homage to Lee by baptizing themselves as Division of Laura Lee.

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