Lane was born in New York City. Her mother, Colleen Leigh Farrington, was a nightclub singer and Playboy centerfold (Miss October 1957), who was also known as "Colleen Price". Her father, Burton Eugene Lane, was a Manhattan drama coach who ran an acting workshop with John Cassavetes, worked as a cab driver, and later taught humanities at City College. When Lane was 13 days old, her parents separated. Lane's mother went to Mexico and obtained a divorce while retaining custody of Lane until she was six years old. Lane's father received custody of her after Lane's mother moved to her native state, Georgia. Lane and her father lived in a number of residential hotels in New York City and she rode with him in his taxi.