Edward (then Eduard) Lasker was born in Kempen (K?pno), Province of Posen (Greater Poland), Prussia, German Empire, (present Poland). He studied in Breslau (Wroc?aw) and in Charlottenburg (now part of Berlin). Before World War I he moved first to London, England, and then, in 1914 shortly after the outbreak of war, to America, the birthplace of his mother. He found a job in Chicago. When America entered the war in 1917, he was sent enlistment papers, but with the right of exemption as a German. He waived his right to exemption, which he said would make his American citizenship be granted more quickly; however, the war was over before he was called up to military service.

Lasker earned undergraduate degrees at the Technical College of Charlottenburg in Mechanical and Electrical Engineering. In 1921-23, he invented a mechanical breast pump, which saved many premature infants' lives and made Lasker a lot of money, although it caused his friends to refer to him facetiously as "the chest player."

His chess teacher in Breslau was Arnold Schottländer. In Berlin, he won the City Championship (1909) and wrote his first chess book on Chess Strategy (Schachstrategie, 1911) which got many English (and German) editions.

Lasker published several books on American checkers, chess, and Go. He won five U.S. Open Chess Championships (1916, 1917, 1919, 1920, 1921); this tournament was known at the time as the Western Open. His best result was his narrow 8.5–9.5 loss in a match with Frank Marshall for the U.S. Championship in 1923. For that, Lasker was invited to participate in the legendary New York 1924 chess tournament, facing world-class masters like Alekhine, Capablanca, Rubinstein, Emanuel Lasker and Réti. He finished 10th out of 11 players, but many of his games were competitive; Lasker was the only chess amateur in a very strong field of professionals.

His most famous game is probably the queen sacrifice and king hunt against Sir George Thomas. After Lasker checkmated him, Thomas said, "This was very nice." Lasker, who had yet to learn English, was touched by Thomas's sportsmanship after a spectator translated Thomas's remark into German for him. Lasker wrote that had he won the game against a leading Berlin amateur, his opponent would likely have told him, "You are just lucky! Had I played [10...Bxe5] instead of [...Qe7], you would have been lost."

Although Lasker never won against Capablanca, he drew as Black against him at New York 1924. Lasker was not usually so fortunate; for example, Capablanca once arrived one minute before he would have forfeited the game for late arrival, at New York 1915, and Lasker played the Riga variation with which he had some experience, but Capablanca found an advantageous continuation over the board.

Lasker lived on the Upper West Side of New York City until his death in 1981.

He was friends with former World chess champion Emanuel Lasker. Edward Lasker wrote in his memoirs of the New York 1924 tournament as published in the March 1974 edition of Chess Life magazine: "I did not discover that we were actually related until he (Emanuel Lasker) told me shortly before his death that someone had shown him a Lasker family tree on one of whose branches I was dangling." In a February 8, 1973 letter to Robert B. Long, Lasker explained their exact relationship:

The genealogy, incidentally, indicates that the common forbear of Emanuel and myself was the son Samuel Lasker of the Rabbi of the Polish village Lask, whose name was originally Meier Hindels. However, later the additional name Lasker was given to him to distinguish him from another Meier Hindels also living in Lask. Samuel Lasker moved to another Polish village, Kepno, in 1769, after it had been captured by Frederick the Great and became a German township, and I am the last descendant of his who was born there. He was the greatgrandfather of my greatgrandfather. His first-born son left Kepmen [sic-Kempen] and moved to Jarotschin, another Polish village, and Emanuel Lasker was that one's greatgrandson.

Lasker was deeply impressed by Go. He first read about it in a magazine article by Korschelt which suggested Go as a rival to chess, a claim that he found amusing. Later on his interest was piqued again when he noticed the record of a Go game on the back of a Japanese newspaper being read by a customer of a cafe where they played chess. He and his friend Max Lange (not to be confused with the more famous chess player with the same name) took the paper after he had left, and deciphered the diagram, but the game was not complete. The position led them to assume that the notation under the game would indicate a black victory, but being unable to read Japanese, they had to ask another Japanese customer at the cafe. To their surprise, it was a resignation by black. Only after three weeks of study was Max Lange able to understand the reason for white's victory. This experience led them to a deeper appreciation for the game, and they studied it in earnest, but were unable to interest other chess players.

After two years, Emanuel Lasker, then the world chess champion, returned to Germany from the United States. When Edward told him that he had found a game to rival chess, he was skeptical, but after being told the rules, and playing one game, he understood that Go was strategically deep. They started studying Go with Yasugoro Kitabatake, a Japanese student, and after two years were able to beat him with no handicap.

Kitabatake arranged a game for Edward, Emanuel and Emanuel's brother Berthold, against a visiting Japanese mathematician, and strong Go player. The Laskers took a nine-stone handicap, and played in consultation with each other, considering their moves deeply, but their opponent beat them effortlessly and without taking much time to think. After the game, Emanuel suggested to Edward that they travel to Tokyo to study Go. In 1911, Edward got a job at AEG. After a year at the company, he tried to get transferred to the Tokyo office, but as the company only posted fluent English speakers in Tokyo, he went to work in England first. He was detained there during the early part of World War I, and never made it to Tokyo. He was, however, given permission to travel to the USA by Sir Haldane Porter, a highly-ranked Foreign Office mandarin, who remembered that he had won the London chess championship in May 1914. Lasker was instrumental in developing Go in the USA, and together with Karl Davis Robinson and Lee Hartman founded the American Go Association.

This is Lasker's most famous game, and one of the most famous games of all time:

Ed. Lasker-Sir George Thomas, London 1912 (offhand clock game) 1.d4 e6 2.Nf3 f5 3.Nc3 Nf6 4.Bg5 Be7 5.Bxf6 Bxf6 6.e4 fxe4 7.Nxe4 b6 8.Ne5 O-O 9.Bd3 Bb7 10.Qh5!? Qe7?? (diagram at left; 10...Bxe5! 11.Qxe5 Nc6 or 11.dxe5 Rf5 wins a pawn) 11.Qxh7+!! Kxh7 12.Nxf6+ Kh6 (12...Kh8 13.Ng6#) 13.Neg4+ Kg5 14.h4+ (14.f4+ also forces mate, more rapidly if 14...Kxf4 15. g3+ Kg5 16. h4# or 15...Kf3 16. O-O#) Kf4 15.g3+ Kf3 16.Be2+ (16.0-0 or 16. Kf1, with the threat 17.Nh2# as a quicker mate) Kg2 17.Rh2+ Kg1 18.Kd2# 1-0 (diagram at right)