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ABC were formed in 1980 in the city of Sheffield, after Martin Fry, a music journalist, interviewed the band Vice Versa for his fanzine Modern Drugs. They adopted Fry as lead vocalist and changed their name to ABC. The revamped band were pigeon-holed as part of the New Romantic movement of the time, which included the likes of Duran Duran and Spandau Ballet. Although the band would offer many stylistic spins within its career, it is best known for combining synthesizers with orchestra to produce a polished, bright pop-oriented sound.

The first single, "Tears Are Not Enough", made the UK Top 20 in 1981. Soon afterwards, David Robinson left the band and was replaced by drummer David Palmer.

In 1982, the band released their debut album The Lexicon of Love. Heavy on rhyming couplets and tales of unrequited love, the album was a big hit, reaching number one in the UK album charts. Produced by Trevor Horn, it often features in UK critics' lists of favourite albums: it ranked 42nd in The Observer Music Monthly's "Top 100 British Albums" (June 2004) and 40th in Q magazine's "100 Greatest British Albums" (June 2000). The album is notable for its uncanny mixture of wit, overall musicality, attention to recorded sonics, its magnificent string arrangements by Anne Dudley, and exceptional graphic design.

The band had three Top 10 hits during 1982: the singles "Poison Arrow", "The Look of Love (Part One)" and "All of My Heart" and shot high-concept music videos that captured a suave Great Gatsby-meets-James Bond aesthetic.