The subwavelength confinement feature of localized surface plasmon resonance (LSPR) allows plasmonic nanostructures to be functionalized as powerful platforms for detecting various molecular analytes as well as weak processes with nanoscale spatial resolution. One of the main goals of this field of research is to lower the absolute limit-of-detection (LOD) of LSPR-based sensors. This involves the improvement of (i) the figure-of-merit associated with structural parameters such as the size, shape and interparticle arrangement and,(ii) the spectral resolution. The latter involves advanced target identification and noise reduction techniques. By highlighting the strategies for improving the LOD, this review introduces the fundamental principles and recent progress of LSPR sensing based on different schemes including 1) refractometric sensing realized by observing target-induced refractive index changes, 2) plasmon rulers based on target-induced relative displacement of coupled plasmonic structures, 3) other relevant LSPR-based sensing schemes including chiral plasmonics, nanoparticle growth, and optomechanics. The ultimate LOD and the future trends of these LSPR-based sensing are also discussed.