He continued to work with Lynch throughout his career, which included a recurring role as Pete Martell on Twin Peaks (1990–1991).

He had success and landed the lead role in a play based on the life of Thomas Paine which was directed by David Lindemann.

The New York Times wrote in 1980, "[Nance's] minimalist features, unchanging expression, tight dark suit, and short, almost crippled steps suggest many silent-film comedians.

While none of Nance's scenes filmed for Fire Walk with Me appeared in the theatrical cut, they were later compiled in the feature-length Twin Peaks: The Missing Pieces (2014).

[11] Nance appeared with actress Mary Woronov as a married couple in the music video for the 1983 Suicidal Tendencies song “Institutionalized".

[13] In 1990, Nance was offered the role of Pete Martell in Lynch's Twin Peaks, appearing throughout the show's original run.

Nance appeared in Twin Peaks: The Return (2017) in footage featuring Pete Martell from the pilot episode of the original series.

The minor role afforded Nance a lot of spare time during filming in Mexico City, much of which he spent drinking.

[7] In 1986, while filming Blue Velvet, Nance told the newly sober Dennis Hopper that if he did not help him, he would jump from the window.

Nance, who was in Bass Lake, California, filming Meatballs 4 at the time, called her to tell her that he was thinking of leaving her due to her drinking and drug-taking.

She threatened to kill herself if he hung up on her, and at that moment a lightning storm knocked out the phone lines in Bass Lake.

Nance and the director, Bobby Logan, found a deputy sheriff who contacted the Los Angeles Police Department.

Nance had a visible "crescent-shaped bruise" under his eye; and, when asked about it, he relayed to them a story about a brawl outside a Winchell's Donuts store that morning.

[7][14][18] The song "I Gotta Move" by Frank Black and the Catholics, from their 1997 eponymous debut album, refers to the circumstances of Nance's death and the murder of Peter Ivers, who composed and performed the song "In Heaven" from Eraserhead (which Black's previous band Pixies had covered).