The former wrestler - real name William Alvin 'Bill' Moody - was known for his character of funeral director Bearer, a wrestling manager who regularly carried an urn and used the catchphrase "Ohhh yyyes!"
The former real-life funeral director managed several top wrestling stars, including The Undertaker, Kane, Rick Rude, Vader and Mankind.
It is currently unclear what caused Bearer's death, but he is known to have suffered from several health issues in recent years, including morbid obesity and gallbladder problems.
The WWE said in a statement: "WWE is saddened to learn of the passing of William Moody, aka Paul Bearer."
"Moody made his WWE debut in 1991 as the manager of The Undertaker and went on to become a memorable part of WWE over the course of the next 20 years.
"Our deepest condolences go out to Moody's family, friends and fans."
Several wrestling icons have paid tribute to Moody's passing, with Triple H tweeting: "Rest in peace, Paul Bearer. You will never be forgotten. There will never be another."
Hulk Hogan said: "Very sad about Paul Bearer, he was a great person and one of the original boys, he was what made wrestling great much love much respect."
Watch Paul Bearer's return to the WWE in 2010 below: