VLC does support blu-rays, but you have to have a Blu-Ray DVD player to do this, not just a standard DVD player. Typically, on the front of the DVD player tray it will have the Blu-Ray logo if it supports Blu-Rays.
To open the Blu-Ray in VLC, follow the instructions bellow.
1. Open VLC
2. Go to Media then Open Disc...
3. From the next menu, make sure you have Blu-Ray selected from the top.
4. If your BluRay is plugged in, it may automatically pick it up. Otherwise, you will need to click browse and select your Blu-Ray disc. After this it should start playing after you click the Play button at the bottom.