Filezilla doesn't support unzipping zipped files directly from a website's server. However you can work around the issue by downloading the relevant files from the server to your local drive and using your favorite zip utility to unzip the file.
What are the Possibilities to Unzip a zip file uploaded to a webserver
Click the "Start" button, and then click "Computer" to open Windows Explorer. Navigate to the folder that contains the executable file of the tool that you use to extract ZIP files. Most applications are installed in the "Program Files" folder on the system drive by default.
Click the "Address" field at the top of Windows Explorer to select the path to the folder that contains the executable, and then press "Ctrl-C" to copy the path to the clipboard.
Related Reading: How to Extract an IMG File
Launch FileZilla, click "Edit" and choose "Settings" from the menu.
Click the "Filetype associations" item in the navigation pane at the left, under the File Editing node.
Click inside the right pane to place the insertion cursor, type "zip" (without the quotes), insert a space, and then press "Ctrl-V" to insert the path to the archiving utility.
Insert a "\" character, and then type the name of the executable file. For example, if you use WinZip to extract ZIP files, the line would look like this:
zip C:\Program Files\WinZip\WINZIP32.EXE
Click "OK" to save the association. You can now right-click a ZIP file and select "View/Edit" from the context menu to start extracting it directly from FileZilla.
Think that you uploaded a zip file to a server using Filezilla, you cannot unzip it on the server using that or any other program. So You could follow this suggestion
1. Log into to your website hosting Control Panel (where you purchased the hosting account - Use Your hosting account credentials).
2. Find and click on File Manager.
3. Navigate the folders of your website until you find the file you want to unzip.
4. Select the file and then click Extract or Unzip or Uncompress, which should be in the tabs along the top of the file manager window.
5. There should be a new window or message that appears asking you where you want to move the unzipped folders to. Select the folders and choose Add or Move/Copy and then select the location that you want the files to be moved.
6. Click Move/Save/Copy and check to make sure they have been copied.
This is one method to unzip a large zipped file.
Move the file you want to unzip in Filezilla from your webserver to your local computer. To move a file in Filezilla, drag the file name from the right server window to the left local device window. This step downloads the file to your local computer.
Unzip the file on your local computer.
Drag the unzipped files in Filezilla from the left local device window to the webserver window on the right. This uploads all the file in the queue.