Understanding causal mechanisms among variables is critical to efficient management of complex biological systems such as animal agriculture production. The increasing availability of data from commercial livestock operations offers unique opportunities for attaining causal insight, despite the inherently observational nature of these data. Causal claims based on observational data are substantiated by recent theoretical and methodological developments in the rapidly evolving field of causal inference. Thus, the objectives of this review are as follows: 1) to introduce a unifying conceptual framework for investigating causal effects from observational data in livestock, 2) to illustrate its implementation in the context of the animal sciences, and 3) to discuss opportunities and challenges associated with this framework. Foundational to the proposed conceptual framework are graphical objects known as directed acyclic graphs (DAGs). As mathematical constructs and practical tools, DAGs encode putative structural mechanisms underlying causal models together with their probabilistic implications. The process of DAG elicitation and causal identification is central to any causal claims based on observational data. We further discuss necessary causal assumptions and associated limitations to causal inference. Last, we provide practical recommendations to facilitate implementation of causal inference from observational data in the context of the animal sciences.