The Students' Union claim Dr Ellis has breeched requirements for staff to promote equality and want him sacked.
More than 200 students gathered at the city campus to make their views known.
Dr Ellis has expressed support for the Bell Curve theory, examined in a book by Richard Hernnstein and Charles Murray, which concludes that ethnicity can play a part in IQ levels.
'Abhorrent' views
He has also praised the work of scholars such as Hans Eysenck and Arthur Jensen who have come to similar conclusions and said their opponents were worried about the implications for equal opportunities.
But he said these ideas did not preclude the existence of some black people of exceptional intelligence.
The University of Leeds said Dr Ellis's view were "abhorrent" and it had written to him asking him to stop making any further public comment.
It said it had to be satisfied that he was not undermining its commitment to equality and diversity but added that it intended to discharge its full responsibility under the Race Relations Act.
Dr Ellis said he was unable to comment on the demonstration but has previously denied doing anything wrong and said that labelling him as a racist was an attack on his freedom of speech.
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