The novel coronavirus pneumonia (COVID-19) is spreading worldwide and threatening people greatly. The routes by which SARS-CoV-2 causes lung injury have grown to be a major concern in the scientific community since patients with new Coronavirus, severe acute respiratory syndrome coronavirus (SARS-CoV-2) have a high likelihood of developing acute respiratory distress syndrome (ARDS) in severe cases. The mortality rate of COVID-19 has increased over the period due to rapid spread, and it becomes crucial to understand the disease epidemiology, pathogenic mechanisms, and suitable treatment strategies. ARDS is a respiratory disorder and is one of the clinical manifestations observed in patients with severe COVID-19. In this scenario, it is important to address this problem to develop suitable treatment strategies. This review attempts to present the prevalence of ARDS in COVID-19 patients and their predictive causes and risk factors, highlighting the contrasting features of COVID-19-induced ARDS with typical ARDS. This review also presents insights into the association between SARS-CoV-2 and lung damage while exploring the potential COVID-19 mechanisms in ARDS from the perspective of the angiotensin-converting enzyme 2 protein, cytokine storm, immune responses, and other signaling pathways. The review also discusses the diagnosis strategies, pathogenesis, risk factors, and treatment options of COVID-19-related ARDS.