Gordon was raised in a Jewish family in Belzoni, Mississippi. He graduated from Tulane University in New Orleans. After moving to Los Angeles he began his producing career in 1964 working for Aaron Spelling and became writer and associate producer on the TV series Burke's Law. He quickly moved up the ranks and worked as an executive producer at ABC and at Screen Gems.
In early 1968 Gordon joined American International Pictures. In August 1969 he was named vice president for motion picture and film development. He resigned in February 1970 to form his own company. In 1971 Gordon went to Screen Gems and he returned to AIP in January 1972 as head of production. Among the films released under his auspices were Slaughter and Boxcar Bertha.
He received credit as executive producer on John Milius's Dillinger (1973).
Gordon left as worldwide production head in early 1974 to form his own company and did a deal with Columbia Pictures. Its first film was Hard Times (1975). In 1978 he had two high-grossing films with Hooper and The End, both starring Burt Reynolds.
Gordon and Walter Hill were going to make The Last Gun. Financing fell through so they made The Warriors instead.
In the early 1980s, he created the TV series Matt Houston.
Gordon worked on multiple films in the 1970s and 1980s with fellow producer Joel Silver, most notably Streets of Fire and 48 Hrs.
Gordon was President of 20th Century Fox from 1984 to 1986. He was planning to reactive Lawrence Gordon Productions on the Fox lot in order to receive a two-year independent production deal with the studio.
In 1989, he produced Field of Dreams which received an Academy Award nomination for Best Picture. He subsequently formed Largo Entertainment which was backed by the Japanese company JVC.
Gordon also had an independent production deal with Universal Pictures under the name Lawrence Gordon Productions. Under Lawrence Gordon Productions, he produced Jumpin' Jack Flash, Boogie Nights, Mystery Men, K-9, the Lara Croft: Tomb Raider franchise, and Watchmen.
For three years, from 1986 until its founding of Largo in 1989, Lawrence Gordon Productions was based at 20th Century Fox, sometimes heading under the name Gordon Company.
