In this paper we present the laboratory characterization and performance evaluation of the First Light Adaptive Optics (FLAO) the Natural Guide Star adaptive optics system for the Large Binocular Telescope (LBT). The system uses an adaptive secondary mirror with 672 actuators and a pyramid wavefront sensor with adjustable sampling of the telescope pupil from 30×30 down to 4×4 subapertures. The system was fully assembled in the Arcetri Observatory laboratories, passing the acceptance test in December 2009. The performance measured during the test were closed to goal specifications for all star magnitudes. In particular FLAO obtained 83% Strehl Ratio (SR) in the bright end (8.5 magnitudes star in R band) using H band filter and correcting 495 modes with 30×30 subapertures sampling. In the faint end (16.4 magnitude) a 5.0% SR correcting 36 modes with 7×7 subapertures was measured. The seeing conditions for these tests were 0.8" (r0 = 0.14m @ 550 nm) and an average wind speed of 15m/s. The results at other seeing conditions up to 1.5" are also presented. The system has been shipped to the LBT site, and the commissioning is taking place since March to December 2010. A few on sky results are presented.© (2010) COPYRIGHT SPIE--The International Society for Optical Engineering. Downloading of the abstract is permitted for personal use only.