Lane studied at Bristol Polytechnic and Goldsmiths College, University of London. Lane exhibited the Damien Hirst curated Freeze in 1988, with others including Gary Hume RA, Sarah Lucas and Fiona Rae RA.

Karsten Schubert gave her the first solo show in 1992.

Her work is based on late Victorian displays such as séances, circus imagery and magic shows. It has included wallpaper with a repeated design of images of her rear, scratching and scraping noises heard behind a shut door and wax replicas of bodily fragments suspended from the ceiling.

Considering Lane's sensibility, Tracey Emin said, "Abigail could show the contents of her fridge and it would be fantastic."

In October 2003, with Bob Pain and Brigitte Stepputtis, she launched a design company called "Showroom Dummies". Work has included cushions, blankets, uniforms and wall coverings. She asked artists to adapt plastic skulls. Sarah Lucas cast one in concrete; Peter Blake covered one with the endings of books.