Laser-produced plasmas (LPPs) engulf exotic and complex conditions ranging in temperature, density, pressure, magnetic and electric fields, charge states, charged particle kinetics, and gas-phase reactions, based on the irradiation conditions, target geometries, and the background cover gas. The application potential of the LPP is so diverse that it generates considerable interest for both basic and applied research areas. The fundamental research on LPPs can be traced back to the early 1960s, immediately after the invention of the laser. In the 1970s, the laser was identified as a tool to pursue inertial confinement fusion, and since then, several other technologies emerged out of LPPs. These applications prompted the development and adaptation of innovative diagnostic tools for understanding the fundamental nature and spatiotemporal properties of these complex systems. Although most of the traditional characterization techniques developed for other plasma sources can be used to characterize the LPPs, care must be taken to interpret the results because of their small size, transient nature, and inhomogeneities. The existence of the large spatiotemporal density and temperature gradients often necessitates non-uniform weighted averaging over distance and time. Among the various plasma characterization tools, optical-based diagnostic tools play a key role in the accurate measurements of LPP parameters. The optical toolbox contains optical probing methods (Thomson scattering, shadowgraphy, Schlieren, interferometry, velocimetry, and deflectometry), optical spectroscopy (emission, absorption, and fluorescence), and passive and active imaging. Each technique is useful for measuring a specific property, and its use is limited to a certain time span during the LPP evolution because of the sensitivity issues related to the selected measuring tool. Therefore, multiple diagnostic tools are essential for a comprehensive insight into the entire plasma behavior. In recent times, the improvements in performance in the lasers and detector systems expanded the capability of the aforementioned passive and active diagnostics tools. This review provides an overview of optical diagnostic tools frequently employed for the characterization of the LPPs and emphasizes techniques, associated assumptions, and challenges.