As in the previous game, the player will control Gabriel Belmont, now known as Dracula, as he fights through an open world. During the game's opening sequence the player will able to control Dracula while he still possesses all his powers as well as all of his weapons. Dracula's main weapon is his Blood Whip, a weapon that is comparable to the Combat Cross from the original Lords of Shadow. Replacing the magic system from the previous game are the Void Sword and the Chaos Claws. The Void Sword can replenish Dracula's health when used while the Chaos Claws can be used to break through enemy defenses and deliver powerful attacks. The story mode in Lords of Shadow 2 has been stated to be far longer than the previous one. The game will mainly be an open world allowing the player to choose what route to choose. This game will also feature a movable camera, something that was not available in the first Lords of Shadow game.

Dracula awakens many years after the events of the two previous Lords of Shadow titles. He has been warned by Zobek of the return of Satan and sets out to regain his powers so that he may face Satan once again. The key to him regaining his power lies in his castle. However, the famed Belmont clan and his own son Alucard seek his ultimate destruction.

The game was announced at E3 2012. The developers' intention was to play as Dracula for the first time in the Castlevania series and conclude the storyline started in the first Lords of Shadow. Although the prequel was well-received, the designers noted it had several flaws which they wanted to fix and improving the gameplay. This includes reducing the game's overreliance on quick time events, remove the fixed camera in favor of a 360 field and improve the framerate. Rather than recycling elements from previous games, the team decided to redesign the game engine. The Lords of Shadow was also felt too linear by the developers which resulted in another change for the sequel; The game was made an open world to give the player a sense of exploration and avoid transitions between levels. Despite starting it linear, the player will be given multiple options as he progresses. This was also made to contrast other hack and slash series such as God of Warand Devil May Cry. Designing the modern setting brought multiple difficulties to the designers. The team had previously done open world games but were disappointed with their quality and believe Lords of Shadow 2 will be an improvement over those.