A system and method for rendering a binary volume in a GPU are provided. The method for rendering a binary volume comprises: storing eight bits of the binary volume along an x-axis in a byte of memory to form a compact representation of the binary volume; generating a two-dimensional decoding table of the compact representation of the binary volume; extracting a byte including a bit of interest from the compact representation of the binary volume; determining a bit coordinate for the bit of interest and extracting a decoded value of the bit of interest from the two-dimensional decoding table; obtaining a gray value of the decoded value of the bit of interest and classifying the gray value; and multiplying the decoded value of the bit of interest by the gray value to form a resultant value.