Formally described in 1912, it was for a long time considered the same species as the similar Lepiota cristata until molecular analysis reported in 2001 demonstrated that it was genetically distinct.

Morgan); this opinion was later corroborated by Walter Sundberg in 1989 after he studied the type collection and concluded that the microscopic characteristics of both were the same.

[3] Using molecular analysis based on comparing DNA sequences of the internal transcribed spacer region, mycologist Else Vellinga determined that despite the lack of distinguishing micro-morphological characteristics, the two species were distinct.

[5] The fruit bodies of Lepiota castaneidisca have white, bell-shaped to convex caps 0.8 to 3.2 cm (0.3 to 1.3 in) in diameter, with an orange-reddish to pale orange-brown center.

The cap surface develops small pale pink or cream patches (especially on the outermost zone) on a white background that has radially arranged fibrils.

[5] The mushroom is not known to be poisonous, but consumption is not recommended due to the risk of possible confusion with Lepiota species that contain deadly amatoxins.

[4] Lepiota castaneidisca closely resembles L. cristata (with which it has commonly been confused),[6] but it has a more rounded cap, lacks an umbo, and is reddish- or pinkish-brown, rather than orange-brown.

L. neophana is a rare species, but more widely distributed in the United States than L. castaneidisca, as it has been reported from Ohio and Michigan in addition to California.

[4] Fruit bodies appear in the late fall and winter (November to February), where they grow gregariously near cypress, redwood or in mixed coast live oak forests.