A federal appeals court on Thursday lifted an injunction on a Mississippi law that grants private individuals and government workers far-reaching abilities to discriminate against lesbian, gay, bisexual and transgender people on religious grounds, though lawyers said the law was likely to remain blocked for the time being during the appeals process.

Thursday’s decision, issued by a three-judge panel of the United States Court of Appeals for the Fifth Circuit, is part of a legal drama being closely watched by gay-rights advocates and religious conservatives. The state law, titled the Protecting Freedom of Conscience from Government Discrimination Act, was signed by Gov. Phil Bryant, a Republican, on April 5, 2016. It is considered the most aggressive of several state-level conservative responses to the United States Supreme Court’s legalization of same-sex marriage in 2015.

According to a legal analysis released last year by Columbia University, the Mississippi law would, among other things, allow government clerks to opt out of certifying same-sex marriages (though only if the marriage is not “impeded or delayed” by their decision) and allow businesses to deny wedding-related services to same-sex couples if their marriage contravened “a sincerely held religious belief or moral conviction.”

It would allow religious organizations to engage in job and housing discrimination against L.G.B.T. people; allow public school counselors to refuse to work with L.G.B.T. students; and potentially force child-welfare agencies to place L.G.B.T. children with anti-gay foster or adoptive parents.