It was initially described as a subspecies of Laccaria laccata by French mycologist René Maire in 1937, before being raised to species rank by P.D.

[3] This species is mycorrhizal with a range of trees, and is found throughout the temperate zones of the world, in summer and autumn.

[3] Laccaria bicolor is one of a number of species of carnivorous fungi, but one of the few that catches and kills arthropods, specifically springtails.

[8][9][10] Studies have shown that L. bicolor is more effective in early colonization of pine roots compared to other ectomycorrhiza forming fungi.

Analysis revealed a large number of small secreted proteins of unknown function, several of which are only expressed in symbiotic tissues, where they probably play a role in initiating symbiosis.