Don Dixon was born on December 13, 1950 in Lancaster, South Carolina. His college roommate was the writer Bruce Brooks.

Dixon is considered to be one of the key producers of what is called the jangle pop movement of the early 1980s. He spent thirteen years as a member of NC cult heroes Arrogance. Around 1983, Dixon attracted attention by co-producing with Mitch Easter, R.E.M.'s landmark debut LP Murmur. He then spent several years producing the work of varied artists including Chris Stamey (formerly of The dB's) and The Smithereens. Considered to be a highlight of this period was Tommy Keene's Run Now EP (co-produced with T Bone Burnett). This success led to Dixon recording his solo debut Most of the Girls Like to Dance (But Only Some of the Boys Like To), a further affirmation of his love of classic pop melodies and spiky, Nick Lowe-inspired wordplay.

After producing wife Marti Jones' Unsophisticated Time, he released his second solo effort, Romeo at Juilliard, in 1987 and the live Chi-Town Budget Show a year later. After 1989's EEE, Dixon's recording career went into hiatus for several years and he returned to producing, helming efforts for the Smithereens, Richard Barone, and James McMurtry before finally releasing Romantic Depressive in 1995. Another lengthy hiatus preceded the early 2000 release of The Invisible Man and its 2001 follow-up, Note Pad #38. His latest release, The Entire Combustible World in One Small Room followed in summer 2006.

Besides his life as a musician and producer, Don launched an acting career playing an alcoholic director in Todd Graff's 2003 film Camp.