The origins of Leeds Playhouse lie in the Leeds Playgoers' Society, founded in 1907 as an off-shoot of the Leeds Arts Club, to stage contemporary drama by writers such as Shaw, Ibsen and Chekhov, and hold lectures and discussions on contemporary drama. The idea of creating a Leeds Playhouse dates from 1964, when a campaign was started for a permanent home for modern and contemporary theatre in Leeds. Despite some opposition from the local council on the grounds that Leeds already had a theatre (the Grand Theatre), a public appeal was launched to raise funds at a mass meeting in Leeds Town Hall on 5 May 1968. The meeting was addressed by Peter O'Toole, Keith Waterhouse, and the actor and joint artistic director of Nottingham Playhouse, John Neville, amongst others. £20,000 was raised by public subscription, but the project still needed support from Leeds City Council. The Council eventually promised £25,000, and £5,000 annually if necessary. This, along with grants from the Arts Council and the Gulbenkian Foundation, meant that the project could go ahead and the Leeds Playhouse opened in 1970 in premises loaned to the Leeds Theatre Trust by the University of Leeds. The first performance was held on Wednesday 16 September 1970 with Tony Robinson, who later went on to play Baldrick in the television series Blackadder, starring as Simon in Alan Plater's play Simon Says, directed by Bill Hays. The following month Robinson also appeared in The Merry Wives of Windsor by William Shakespeare, where he played Abraham Slender. The Leeds Playhouse turned into the West Yorkshire Playhouse in March 1990 when it relocated to the Quarry Hill area of the city as part of a major regeneration scheme. In June 2018, it rebranded as Leeds Playhouse once again in response to the development and growth of Leeds City region and also Leeds City Council's longstanding support for the theatre in Leeds.
Leeds Playhouse was designed by The Appleton Partnership architects of Edinburgh. The complex comprises: The Quarry Theatre (750 seats), The Courtyard Theatre (350 seats), a CAMRA award-winning bar, a restaurant, the Newlyn Gallery, two function rooms (the Congreve Room and the Priestley Room), three rehearsal spaces, a recording studio, extensive technical workshops, dressing rooms, a costume hire department and offices for production, administrative and artistic teams. The foundation stone was laid by Judi Dench in 1989, and on completion it was opened by Diana Rigg. The theatre was completed at a cost of £13 million. The building underwent a £16.8 million redevelopment in 2019: creating a new foyer, improving access throughout the building, moving the front of the building to face the city and creating the Bramall Rock Void studio space (130 seats).
The playhouse has a large neon sculpture on its exterior which spells out the lyric from the song "Tubthumping" by Chumbawamba: "I get knocked down but I get up again".
The sculpture Ribbons by artist Pippa Hale is next to the theatre, which was a partner in the development of the work, which commemorates women of Leeds.