"In the book The Kinks: The Official Biography, Davies says that he was inspired to write this song after the band manager Robert Wace had spent the night dancing with a transvestite. Davies said,
"In his apartment, Robert had been dancing with this black woman, and he said, 'I'm really onto a thing here.' And it was okay until we left at six in the morning and then I said, 'Have you seen the stubble?' He said 'Yeah,' but he was too pissed [intoxicated] to care, I think." My sources say it's about a transvestite, but my source is wikipediahttp://en.wikipedia.org/wiki/Lola_(song)