The 22-year-old, whose real name was Montae Talbert, died Sunday night, Sgt. Brian Spencer with the Inglewood Police Department said.
Police say the suspect pulled up in another vehicle, possibly a red Mustang, and opened fire on M-Bone, who was sitting in his car outside a liquor store on La Brea Avenue.
He was struck twice in the head and was later pronounced dead at UCLA Medical Center, police said.
Witnesses say the suspect drove off and then returned to the scene, almost as if to make sure M-Bone was dead.
Police say robbery was not the motive in the shooting. A suspect in the shooting has not been named.
The group's leader, Smoove, has posted a tweet on Twitter saying, "Ma life changed drastically in the. Blink of an eye rip mbone."
A YouTube video showing M-Bone doing "Advance Dougie" dance moves also had several comments referencing his death.
M-Bone grew up in Inglewood, as did other Cali Swag members. The group is perhaps best known for their song "Teach Me How to Dougie."
Anyone with information in the shooting is asked to call the Inglewood Police Homicide Section at (310) 412-5246, or the 24-hour anonymous hotline number "888-41-CRIME" (888/412-7463).