Inquiry-based learning (IBL) is a practice-oriented approach where students pose questions, conduct investigations, and interpret data to develop scientific knowledge and exploratory skills. Learning analytics (LA) holds great potential to capture these dynamic processes, which provides valuable insights to understand student inquiry behaviours and support their practical performance. However, limited studies have systematically examined how LA can be applied to understand and support IBL, limiting its practical applications for both teachers and students. This study synthesises findings from 51 studies to explore research trends, theoretical foundations, LA implementation in understanding IBL processes, and the impacts of LA-supported IBL. The findings reveal that most studies, guided by IBL-related or broader learning theories, focus on tracking students' general inquiry engagement (individually and collaboratively) and specific investigation behaviours, with limited attention to critical stages of inquiry, such as hypothesis generation, data interpretation, group collaboration, and their interactions among these multistage tasks. Some studies demonstrate that LA-based tools, like dashboards and resource recommendations, have significant potential to enhance students' inquiry processes and empower teachers in designing and implementing effective inquiry activities, while empirical evidence remains insufficient to understand how these LA-supported IBL shape student inquiry processes and outcomes. This review identifies several research gaps and proposes future directions to advance the integration of LA in understanding and supporting both students and teachers in IBL contexts, aiming to promote more effective and evidence-based applications of LA in inquiry activities.