Asylum was founded in 1971 by David Geffen, and partner Elliot Roberts, both of whom had previously worked as agents at the William Morris Agency, and operated a folk/rock label.

[1] Although they knew they would sign Browne, the first act that Geffen asked to join the label was his close friend Laura Nyro, whose career he was managing at the time.

The same year, Asylum signed Jo Jo Gunne, Linda Ronstadt, John David Souther, Judee Sill, David Blue, Joni Mitchell and Glenn Frey (whom Geffen encouraged to form the Eagles, with Don Henley, Bernie Leadon, and Randy Meisner).

The biggest coup for Asylum was signing Bob Dylan, who had been with Columbia Records since the early 1960s but who, after a falling-out with the company, was shopping around for a new label.

Geffen served as president and chairman of Elektra/Asylum Records until 1975, when he crossed over to film and was named vice-chairman of Warner Bros. One of Asylum's most prominent signings after Geffen's departure was Warren Zevon, who released a series of successful and critically acclaimed LPs for the label; his self-titled 1976 label debut has been called the best California rock album of the decade.

Under the new format, Asylum scored successful recordings by such acts as Emmylou Harris, Brother Phelps, Thrasher Shiver, Kevin Sharp, Bryan White, and Lila McCann.

They also produced many critically acclaimed albums by artists such as George Jones, Mandy Barnett, Guy Clark, The Cox Family, Bob Woodruff, Monte Warden, JD Myers and Jamie Hartford (although the last two artists' albums were initially shelved.

By the end of the decade, however, mismanagement and a lack of promotion money led to the dissolution of the Asylum country label.

LeAnn Rimes, Clay Walker, Lee Brice, Rio Grand, Hank Williams, Jr. and Wynonna were among the artists on the Asylum-Curb division.