It lies mostly in the Lower Ohře Table, but a small northern part of the municipal territory extends into the Central Bohemian Uplands and includes the highest point of Louny at 301 m (988 ft) above sea level.

Already at the turn of the 11th–12th centuries there was a settlement named Luna, located on the site of today's Church of Saint Peter.

The economic development of Louny occurred in the second half of the 19th century, when railway repair shops, sugar factory, brewery, slaughterhouses, mills and financial institutions were founded.

Since 2019, the industrial complex is rented to the DAKO-CZ company, which is a brake system manufacturer for rolling stock.

[9] Other industries include a brewery (from the hops which are grown in the region) and a factory making porcelain electrical insulators for power cables.

The largest employer with headquarters in Louny is Fujikoki Czech company, producer of thermostatic expansion valves used in car air conditioners.

[11] The most important architectural feature is Roman Catholic Church of Saint Nicholas, built in the late Gothic style in 1519–1538.