Beach House began recording Teen Dream after extensive touring for their second album, Devotion (2008). Victoria Legrand noted that while touring limited their creative output, it also built anticipation for the next album. Most of the recording took place at Dreamland Studios in Hurley, New York, with Chris Coady handling production. Teen Dream was described as dream pop and shoegaze, with elements like piano, organ, percussion, pedal steel, and Legrand’s vocals. The band aimed for a more "sophisticated" sound, with less reverb compared to previous albums. Alex Scally also mentioned the album was much more expensive to produce, saying, "Every bit of money we got, we spent."