Laser-induced graphene (LIG) is produced rapidly by directly irradiating carbonaceous precursors, and it naturally exhibits as a three-dimensional porous structure. Due to advantages such as simple preparation, time-saving, environmental friendliness, low cost, and expanding categories of raw materials, LIG and its derivatives have achieved broad applications in sensors. This has been witnessed in various fields such as wearable devices, disease diagnosis, intelligent robots, and pollution detection. However, despite LIG sensors having demonstrated an excellent capability to monitor physical and chemical parameters, the systematic review of synthesis, sensing mechanisms, and applications of them combined with comparison against other preparation approaches of graphene is still lacking. Here, graphene-based sensors for physical, biological, and chemical detection are reviewed first, followed by the introduction of general preparation methods for the laser-induced method to yield graphene. The preparation and advantages of LIG, sensing mechanisms, and the properties of different types of emerging LIG-based sensors are comprehensively reviewed. Finally, possible solutions to the problems and challenges of preparing LIG and LIG-based sensors are proposed. This review may serve as a detailed reference to guide the development of LIG-based sensors that possess properties for future smart sensors in health care, environmental protection, and industrial production.