Laser absorption spectroscopy (LAS) is a promising diagnostic method capable of providing high-bandwidth, species-specific sensing, and highly quantitative measurements. This review aims at providing general guidelines from the perspective of LAS sensor system design for realizing quantitative species diagnostics in combustion-related environments. A brief overview of representative detection limits and bandwidths achieved in different measurement scenarios is first provided to understand measurement needs and identify design targets. Different measurement schemes including direct absorption spectroscopy (DAS), wavelength modulation spectroscopy (WMS), and their variations are discussed and compared in terms of advantages and limitations. Based on the analysis of the major sources of noise including electronic, optical, and environmental noises, strategies of noise reduction and design optimization are categorized and compared. This addresses various means of laser control parameter optimization and data processing algorithms such as baseline extraction, in situ laser characterization, and wavelet analysis. There is still a large gap between the current sensor capabilities and the demands of combustion and engine diagnostic research. This calls for a profound understanding of the underlying fundamentals of a LAS sensing system in terms of optics, spectroscopy, and signal processing.