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Albano's parents, Carmen Louis Albano and Eleanor Albano nee Morrone, were of Italian heritage but both born in the United States. Eleanor was a classical concert pianist who had performed at Carnegie Hall and later became a registered nurse. Her brother, a physician, introduced her to Carmen in the 1930s, who was training to be an obstetrician. After marrying, they temporarily relocated to Italy while Carmen pursued his medical degree at the University of Bari.

In January 1971, Albano was the manager when Ivan Koloff ended Sammartino's seven-year reign as champion. Koloff's title reign was a transitional one, lasting just three weeks. Koloff had a typical heel run against Sammartino in 1969, but Albano spent months claiming that his previous manager had trained him incorrectly, and that Koloff would beat Sammartino under Albano's expert tutelage. The shock of Koloff's victory was such that the crowd fell totally silent, and Sammartino momentarily feared that he'd lost his hearing. Koloff and Albano were quickly rushed out of the ring by security without the championship belt as the crowd began to riot. Albano, his wife, and a family friend, who were both in attendance, escaped to a taxi outside the Garden. The mob surrounded the cab and began breaking windows, so the trio ran to a nearby bar, followed by the crowd who were pelting them with mud and objects. The mob was beginning to destroy the bar as the police finally arrived. Vince McMahon received a bill for damages totalling $27,000 (over $167,000 in 2017 dollars), cementing Albano's unparalleled ability to "draw heat" (arouse anger in the audience).  Albano then resumed his role as the mastermind trying to lead his latest bad guy protege to the gold. For the remainder of the 1970s and into the mid-1980s, Albano's cadre of loyal henchmen were unable to re-secure the heavyweight championship, held by either Sammartino, Pedro Morales, Bob Backlund or Hulk Hogan. However, Albano guided singles wrestlers Don Muraco and Greg Valentine to the Intercontinental Heavyweight Championship. Furthermore, Albano guided fifteen teams to the WWF World Tag Team Championships, including The Valiant Brothers, The Wild Samoans, The Yukon Lumberjacks, The Blackjacks, The Moondogs, The Masked Executioners, and after becoming a face (short for babyface, a wrestling term for a good guy/heroic character), the U.S. Express and the British Bulldogs. It was during his stewardship of the Valiant Brothers that Albano picked up his "Captain" nickname, as the act was promoted as "Captain Lou and the Valiants too." By the end of his career, Albano had managed over 50 different wrestlers who won two dozen championships.  Albano could also help elevate wrestlers by splitting from them. In 1982, despite being managed by the villainous Albano, Jimmy Snuka was unexpectedly becoming a fan favorite due to his high-flying ring style. An interview segment revealed that Snuka had no legal contract with Albano, and thus was able to leave his manager. Shortly thereafter, a bloody beatdown by Albano, Freddie Blassie and Ray Stevens, helped transform Snuka into a sympathetic figure, and triggered the most successful period of his career. Albano had previously helped turn the villainous Intercontinental Champion Pat Patterson into a fan favorite, by "purchasing" Patterson's contract against his will. He also managed the U.S. Express at WrestleMania.
Lou Albano