The title and premise were inspired by "a little old lady from Pasadena," a then-popular catch-phrase originated by used-car dealers on TV commercials in L.A. It became a common punchline for comedians (notably Johnny Carson) and even inspired a hit song by Jan & Dean.
This was the first episode played largely for humor and signaled the beginning of the shift from the harder edge of the previous episodes toward the more light-hearted tone that would typify the series during its peak years, notably with the frequent use of "Caper" in episode titles.
Jeff mentions for the first time that he has a sister who lives in Ojai.