Although it did not register on record charts, Live at Billy Bob's Texas received positive reviews from the majority of critics.

[1] Speaking about the show recorded for the collection, frontman Ray Benson commented that "if there's one place that typifies where you should see Asleep at the Wheel, it's Billy Bob's.

[2] Jurek claimed that the album "sounds better than most folks' studio recordings", as well as praising the choice of songs to perform as "a great grab bag".

[2] Similarly, Robert Wooldridge of the website Country Standard Time praised the collection of songs performed during the show, describing it as "representative of [the band's] best work" and concluding that "With this outstanding effort, Asleep At The Wheel do their part to keep western swing vital.

"[3] Vintage Guitar columnist Steven Stone particularly praised the video release of the album, claiming that "Unlike many live-performance DVDs, this disc has excellent production values, including fine editing, good camera angles, excellent sharpness, sumptuous color saturation, and lively cinematic pacing.