The channel is of glacial origin and is the submerged valley of the historic St. Lawrence River, running 1400 km from a sharp escarpment downstream from the confluence of the St. Lawrence with the Saguenay River, past Anticosti Island and through the Gulf of St. Lawrence to the edge of the continental shelf off the island of Newfoundland.
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On 18 November 1929, a major earthquake (known as the 1929 Grand Banks earthquake) on the southwestern part of the Grand Banks bordering the Laurentian Channel caused an underwater landslide which resulted in extensive damage to transatlantic cables and generated a rare Atlantic tsunami that struck the south coast of Newfoundland and eastern Cape Breton Island claiming 28 lives in the Burin Peninsula.