"Laura" is a complex and heavy song. In it, Billy sings about a woman who seems to be able to manipulate the singer into doing anything by using guilt and other emotional tricks. She is a master manipulator and while he should be "immunized to all of her tricks" by now, she keeps pushing the right buttons. Despite knowing that he has "done everything [he] can, what else am I supposed to do," the singer is stuck in the relationship. "How do you hang up on someone that needs you that bad?" he asks in vain and in desperation.
The "umbilical cord" line indicates that Billy was writing about his mother, though the lyrics could be read more universally. In Fred Schruers' 2015 biography, Billy Joel, he confirms that the song was inspired by Billy's mother who could be a "mind upsetter." Billy was apparently fed up with her and other things going on in his life at the time. Close relationships are complex and nuanced. Billy also wrote about his mother lovingly in "Rosalinda's Eyes" and sympathetically in "Rosalinda." Vertical Divider
Billy on "Laura" from SiriusXM.
Alexa Ray Joel discusses "Laura" on SiriusXM.
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Laura calls me in the middle of the night
Passes on her painful information Then these careless fingers They get caught in her vice 'Til they're bleeding on my coffee table Living alone isn't all that it's cracked up to be I'm on her side, why does she push the poison on me? Laura has a very hard time All her life has been one long disaster Then she tells me she suddenly believes She's seen very good sign She'll be taking some aggressive action I fight her wars while she's slamming her doors in my face Failure to break was the only mistake that she made Here I am feeling like a fucking fool Do I react the way exactly she intends me to? Every time I think I'm off the hook She makes me lose my cool I'm her machine, and she can punch all the keys She can push any button I was programmed through Laura calls me when she needs a good fix All her questions will get sympathetic answers I should be so immunized to all of her tricks She's surviving on her second chances Sometimes I feel like this godfather deal is all wrong How can she hold an umbilical cord for so long? I've done everything I can What else am I supposed to do I'm her machine, and she can punch all the keys She can push any button I was programmed through Laura loves me even if I don't care That's my problem, that's her sacred absolution If she had to, she would put herself in my chair Even though I faced electrocution She always says I'm the best friend that she's ever had How do you hang up on someone who needs you that bad? 
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"Laura" is also notable for its John Lennon-like vocals and phrasing similar to other songs on the album such as "She's Right On Time" and "Where's The Orchestra." Billy stated that "I wonder if I ever would have written 'Laura' -- which had some quirky late-Beatles touches, right down to the la la's and the guitar break -- if I hadn't first heard how deep John went with his song 'Mother.'" (From Fred Schruers' biography Billy Joel, p. 150). Billy has also said that recording The Nylon Curtain (1982) was a catharsis for him after the tragedy of Lennon's murder in 1980 and he was subconsciously singing like John Lennon, one of his musical idols. Listen to Billy discussing John Lennon's death. See also this video tribute to John Lennon set to Billy's "Souvenir." Billy, of course, has covered several Beatles' tunes over the years, though mostly from the early Beatles catalog.