Mystery Ranch was based on Stewart Edward White's novella, The Killer, which was first serialized in Red Book Magazine in 1919 and then published as a book in 1920. White's tale was reportedly inspired by a real-life 19th century Arizona madman, a rancher with a thirst for blood and an army of Mexican outlaws and other rogues who would kill at their boss's whim.

Much of the credit for Mystery Ranch's sense of foreboding belongs to the two men who photographed it. Primary cinematographer Joseph H. August was a founder of the American Society of Cinematographers;