Formed in London in 1983 by John Balance as a solo side project to Psychic TV, the project soon developed into a full-scale musical group in 1984, when he cemented a partnership with Peter 'Sleazy' Christopherson. Christopherson had been a founder of Psychic TV and member of Throbbing Gristle. For over twenty years Coil had been at the forefront of European experimentalism and electronic music. Peter Christopherson has decided that, with the passing of Jhonn Balance, Coil cannot continue.

Coil's live incarnation has a distinct legacy of its own. The first live shows took place in 1983, but after only four performances, sixteen years would pass before they would play live again.

On December 14, 1999 Coil performed elph.zwölf at Volksbuehne in Berlin. Although the performance lasted just under eighteen minutes, it marked the beginning of a new era of live performances. Coil would go on to perform close to fifty additional concerts, with varied set lists as well as performers.

Coil's performances were surrealistic visually and audibly. Balance, Christopherson, Thighpaulsandra and Ossian Brown were known to dress in fluffy suits; an idea inspired by Sun Ra. The suits would later be used as album covers for the release Live One; other costumes appear on the covers of Live Two and Live Three (straightjacket and mirror-chested hooded jumpsuit respectively). Video screens projected footage and animations created by Christopherson, while fog machines created a thick eerie atmosphere. Balance would often screech and howl during performances, which would add to the effect.

John Balance's problem with alcohol would often reflect the way in which the Coil performances were carried out. His drinking problem became so well known that during the 2003 All Tomorrow's Parties performance a fan asked if there is any "blood in his alcohol", a reference to the Coil song "Heartworms". Balance replied that there is no "alcohol in my blood at the moment", later adding "I've got horse tranquillizer for later". The performance, including the dialogue, was released on ...And The Ambulance Died In His Arms.

John Balance died on 13 November 2004 after having fallen from a second floor landing in his home. Peter Christopherson announced Balance's death on the Threshold House website and provided details surrounding the tragedy. Balance's memorial service was held near Bristol on November 23 and was attended by approximately 100 people. On 25 November 2004 Christopherson announced he was in agreement with Balance's partner, Ian Johnstone, that any releases, either as Coil or solo work that Balance was working on at the time of his death, would be put on hold. They decided that time was needed to mourn Balance's passing, recuperate from the loss, and assess the quality of the unreleased work. It was also decided that existing video, audio and other works that were in various states of completion at the time of Balance's death would eventually be released under the name Coil, and all other planned appearances and releases would be canceled. The already-planned live album ...And The Ambulance Died In His Arms was released in April 2005, the name having been chosen by Balance before his death.

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