Lockdown measures against the spread of COVID-19 unleashed a mental health crisis in which queer and trans people faced particular difficulties. This paper argues that mental distress resulting from pandemic lockdowns was for these groups to be considered as a particular relation to death, which is encapsulated by Marx’s notion of ‘dead labor’ – past, living labor and labor that cannot be exploited. Using dead labor as a prism for understanding the necropolitics of mental health under contemporary capitalism, this paper outlines how pandemic lockdowns induced a failure in the reproduction of queer and trans lives which structurally produced mental distress for these groups, and it analyzes how such discapacitation due to mental distress constructed a dead laborer who could temporarily be set aside. In theorizing the concept of dead labor in relation to mental health, this study situates lockdown distress within capitalist quests for profitability and contributes to an emerging scholarship that situates queer and trans struggles within and against capitalist social forms, notably the relation between production and reproduction and the exclusionary figure of the human.