For the 2020 season, Wallace was reunited with crew chief Jerry Baxter, who worked with him in the Truck Series. In the Pennzoil 400 at Las Vegas, Wallace finished sixth for his best finish on a 1.5-mile track. When the season was halted after four races due to the COVID-19 pandemic, he was 18th in points.
Wallace is a Christian. In an interview with Esquire in 2020, Wallace clarified that his criticism of Michael McDowell after an incident at that year's All-Star Race was not meant as an attack on McDowell's Christian faith as some had perceived. "A lot of people took that as attacking his faith and it definitely wasn't that. I have nothing against that. I'm a Christian myself. When you go disrespectful, then that shows the character that you are. That's what I was getting at." Wallace's wrecked front bumper from the incident was put up for auction and raised $20,034 for the Christian non-profit organization Motor Racing Outreach.
In May 2020, after the killing of George Floyd by police officers in Minneapolis, Wallace began to speak out about the abuse of African Americans by the police, becoming the face of stock car racing's involvement in the Black Lives Matter movement. On June 8, 2020, he called on NASCAR to prohibit displays of the Confederate battle flag at NASCAR races. In 2015, after the publication of photographs showing the white man who killed nine black churchgoers in Charleston, South Carolina, posing with the flag, the organization began asking fans not to display the flag at its races. However, many white fans in the South continued to hoist the Confederate flag at races. On June 10, 2020, NASCAR officially banned the display of the flag at its events.
In the 2020 Blue-Emu Maximum Pain Relief 500 NASCAR race at Martinsville Speedway, Wallace's car had a special paint scheme to honor Black Lives Matter. The car featured an illustration of black and white hands interlocking together on the hood of the car, the hashtag #BlackLivesMatter on the side, and the phrase "Compassion, Love, Understanding" on both the hood and the back bumper. Richard Petty, owner of Richard Petty Motorsports, contributed to the livery by adding a peace symbol on the rear quarter-panel of the car that features hands of all colors circling inside the peace symbol. The livery was made after Richard Petty Motorsports failed to secure a primary sponsorship for the race. The team later suggested the idea to Wallace to run an all-black car to honor the movement. Wallace finished 11th after securing top-ten finishes in both stages, his career-best at Martinsville in the Cup Series.
On June 21, 2020, a member of Wallace's team reported to NASCAR that a noose had been placed in Wallace's garage stall at Talladega Superspeedway, which NASCAR president Steve Phelps relayed to Wallace in the evening. The organization condemned the act as "heinous" and said they would consult with law enforcement. Wallace stated that he was "incredibly saddened" by the "painful reminder of how much further we have to go as a society and how persistent we must be in the fight against racism", but also praising his fellow drivers that are "driving real change and championing a community that is accepting and welcoming of everyone". Before the GEICO 500 race the next day, the drivers and crews pushed Wallace's car to the front of pit road in a show of solidarity, a gesture that drivers Jimmie Johnson and Kevin Harvick proposed.
On June 25, 2020, NASCAR released a photo of the noose taken by security. In a teleconference later that day, Phelps explained NASCAR had inspected every garage at the sanctioning body's 29 tracks, with 11 garages containing pull-down ropes tied in knots but only Wallace's being tied into a noose. Although the individual responsible was not identified, Phelps announced that NASCAR would require sensitivity and unconscious bias training for its personnel and that "Bubba Wallace and the 43 team had nothing to do with this."