The 28-year old, whose real name is Darrell Caldwell was scheduled to perform at the Once Upon a Time in LA Festival on Saturday night.
His publicist confirmed his passing to multiple US media outlets on Sunday morning.
According to reports, the artist was attacked backstage during an altercation just before he was due to perform.
Los Angeles police are conducting an investigation, but they told reporters that no arrests have been made as of Sunday morning.
Drakeo the Ruler had over 1.5 million Spotify monthly listeners and collaborated on Talk to Me with Canadian rapper Drake.
At 20:40 GMT (Saturday), paramedics responded at once to a call regarding a stabbing. According to reports, the rapper was taken to hospital and later died from his injuries.
For comment, the BBC reached out to his representatives.
Live Nation, the festival’s promoter confirmed that there had been an “altercation on the roadway backstage” at this event. The event was also set to feature performances by 50 Cent and Snoop Dogg.
It stated that artists and festival organisers had decided to end the festival an hour earlier than planned out of respect for all involved.
Snoop Dogg wrote on Twitter that he was “in my dressing area when I was informed of the incident and decided to immediately leave festival grounds.”
He said, “My condolences go to the family of Draeko The Ruler.” “I pray for peace in hip hop.”
Drakeo’s death was announced by other artists who shared their tributes via social media.
“Always lifted my spirits with your energy. Drake posted the following message on his Instagram Stories early Sunday morning: “RIP Drakeo.”
Saweetie, a rapper, tweeted: “Man Drakeo was always hella chill and respectful. We send our prayers to his family. “RIP The Ruler.”
Jim Jones encouraged his peers to be safe. He wrote an Instagram post, “They know us because of our fame but they don’t know us because of our fame.”
“Felt like we lost a rapper each week this year. We were once protected by the community and treated like super heroes. Not no more.”
‘Nervous music’ pioneer
Drakeo is known for his offbeat cadence, cryptic lyrics and quirky style. He was born in South Central Los Angeles on December 1, 1993 and was raised by one mother.
He spent much of his youth in prison and was attracted to music as a way to escape the traps of street life.
His 2015 mixtape I Am Mr Mosely was his first. It pioneered a jerky and polyrhythmic sound he called “nervous” music.
Later, he recorded verses for the mixtape “Thank You for Using GTL” over a telephone while being held at Men’s Central Jail in preparation for trial in relation to the shooting death of a 24-year old man in 2016.
Drakeo was eventually acquitted. However, prosecutors wanted to retry him for conspiracy charges. He agreed to a plea bargain and was released from jail in November 2020.
Drakeo spoke out shortly after his release to The Ringer, saying that his goal was to “get my mother and all the people that I can care for out of poverty”.
“I have to ensure that they never again feel the need for anything. My story is my way of showing people that, no matter what the circumstances are, anything is possible.
He was quick to release mixtapes in 2020 and his debut album, The Truth Huts earlier this year.
Even though his music did not chart, his peers recognized him as an innovator.
LA writer Jeff Weiss referred to Drakeo as the “greatest west Coast artist of all time”, a legend who created a new rap language with nervous rhythms and slippery cadences.
