Producer Stuart Price told Electronic Beats magazine: "I think 'Inside A Dream' is one of those tracks where the music sounds like the title. The music sounds like you paint it and you put it together with that in mind. And it begins and ends with these, I feel like they're sort of kinda deep house sections."
The reoccurring couplet "The Land of Dreams is better far. Above the light of the Morning Star" is a direct quotation from William Blake's 1803 poem The Land of Dreams. The words are spoken by a little boy to his father at the end of the poem. The little boy's mother had passed away and he sees her in his dreams.
The song features handclaps by Adam Blake, who is Stuart Price's bandmate in the British electronic music group Zoot Woman.