Check out the some useful tips for using Google Drive
Released in January 2014 the Chrome/Drive extension ZIP Extractor allows you to unzip (extract or decompress) files in Google Drive.
From the ZIP Extractor Chrome web store page:
You can add ZIP Extractor via the Chrome web store or via the red CREATE button in Drive
Once added you will now have the option to Right-Click Open with the ZIP Extractor for .zip files stored in Drive.
Once invoked (you will need to grant access permissions for Drive on the initial launch) ZIP Extractor shows a screen with the contents of your zip archive (filenames, sizes).
You can then:
The extraction process shows a Progress Bar during operation and when complete offer you buttons to:
Clicking View extracted files opens a new Chrome tab within the newly created folder containing the extracted files.