In(III)‐Catalyzed O‐annulation of cyclic diazodicarbonyl compounds with 2‐naphthols, 6‐quinolinol, β‐tetralone, and 9‐phenanthrol is developed. This novel synthetic strategy paves a facile and desired access to diverse and functionalized benzochromones. This imperative protocol involves domino carbene generation, ketene formation through Wolff‐rearrangement, nucleophilic addition, H‐migration, intramolecular cyclization, and elimination of water.