Leather can be a great material to work with. It's flexible, organic, sustainable, colourful and cuts and engraves easily.
That said, there's one word which immediately springs to mind when you mention lasers and leather in the same sentence - smelly.
Yes, it dissipates over time. But it can smell like a burning cow for minutes or hours after it's been lasered! So be warned...
Leatherette is an alternative material which has traditionally been used as a replacement where natural leather was deemed too expensive. It engraves and cuts very similarly to natural leather, though does have the benefit that it doesn't have the same smell.