Tuesday's 2-0 loss to fellow strugglers Hull City was the West Midlands club's 10th league game without a win.
They have also managed just 12 league goals from 25 games - the lowest in Premier League history.
First-team coach Scott Marshall and goalkeeping coach Andy Marshall have taken temporary charge with 13 league matches remaining.
Football pundit Pat Nevin said the sacking had been coming given Villa's precarious league position, the lack of goals and the lack of entertaining football for Villa fans at home.
"Paul's a friend of mine, but that one is an absolute stick on," Nevin told Radio 5 live. "It was going to happen."
Disgruntled Villa fans had called for the 45-year-old Lambert, who was appointed in 2012, to go during the game against Hull.
After the match, the Scot said he had been aware of the discontent "months ago" but was determined to battle on:, insisting "I've told the players they've got 13 cup finals."
Only two weeks ago, Villa chief executive Tom Fox had told BBC Sport said Lambert would remain in charge, adding that to sack him would be like "flipping a coin".
Fox added: "When things aren't going well, fans bay for that type of blood. That's not the way that I or the owner are going to make a decision. It's a false narrative."
Villa's decision to sack Lambert came just hours after the Birmingham Mail started a campaign to oust the former Norwich boss.
Their front and back pages were covered with the message: "Birmingham Mail says: Lambert Must Go!"
It was accompanied by the hashtag #lambertout.
Birmingham Mail editor Marc Reeves told BBC Midlands Today that his newspaper wanted to give "hundreds and thousands" of Villa fans the opportunity to have their say on Lambert.
"It's a voice that needs to be listened to and the Mail wanted to play its part in amplifying that voice to the Aston Villa board," he said.
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