Coyle departs just two days after Rovers won compliments for their performance in the FA Cup
The 50-year-old Scot -- who guided them to just 11 wins in 37 matches since taking over in June last year -- leaves with the former English champions second from bottom of the Championship and three points adrift of safety.
Coyle, who has also taken charge of Burnley, Bolton Wanderers and Wigan Athletic amongst other clubs, departs just two days after Rovers won compliments for their performance in the 2-1 FA Cup fifth-round defeat by Manchester United.
"The decision has been taken to give the club the best possible chance of climbing to a position of safety in the Championship," said a club statement.
Blackburn's next game is away to fellow Championship strugglers Burton Albion on Friday.