The Kinks' ban by the American Federation of Musicians on performing in the U.S., in place since their 1965 tour, was lifted in 1969, prompting their management to arrange a North American tour. However, band members fell ill, resulting in only a few dates in America and Canada. A follow-up tour in 1970 faced similar issues, with many dates canceled and only select venues performed at. This downtime allowed Ray Davies, the lead singer and songwriter, to develop the band's next single, "Lola."

The Kinks returned to England to work on their new LP in spring 1970, recording at Morgan Studios in Willesden, London, a shift for them. They continued recording there until Preservation, after which they moved to their new studio, Konk. Recording began in late April/early May, with early sessions including "Lola," the outtake "The Good Life," "Powerman," and "Got to Be Free." The sessions for "Lola" were particularly lengthy, extending into late May. Davies later described how he achieved the track's signature clangy sound.