To promote the development of shading sheds for tunnels, a comprehensive description of research advances and the construction status of shading sheds in China is presented. First, a review of studies on shading sheds of urban tunnels worldwide is presented. Second, the construction status of 291 tunnel shading sheds in China is investigated based on Baidu real scene map. Theoretical designs are compared with actual construction characteristics of shading sheds for urban tunnels, in terms of the application scope, length setting, dimmer structure, background color, and shed top shape. Compared to actual construction, the theoretical designs (1) have 43.4% low application proportion and are shorter (43.8 m); (2) have 57.3% high uncomfortable glare and 13.9% low dark tonal color; and (3) have hysteresis in the induced color and shape. Finally, the application prospects for shading sheds are discussed.