Psycho-Head Blowout was White Zombie's first release to receive praise from more well-renowned critics. However most of the attention was directed towards the live shows surrounding the release of the EP rather than the record itself. Simmons of the The Village Voice wrote, "Their recent EP Psycho-Head Blowout reams the cranium quite nicely, but the live shows will really open your skull" while Smith from the same newspaper simply wrote, "Seethisband. Seethisband. Seethisband. Go." During this time the band toured mostly with other local New York bands such as the Swans, Rat at Rat R, Pussy Galore and The Honeymoon Killers. "We didn't really fit in", recalls Sean "it felt like the East Village scene was amused by us, at best".
The vinyl of the EP was released on White Zombie's own label Silent Explosion and limited to a pressing of one thousand copies.
Allmusic writer Bradley Torreano gave the album three out of five stars, saying, "young Rob Zombie sounded like Damaged-era Rollins, while the band crafted some of the gnarliest grunge on the East Coast" and that "any fans of the New York noise scene would do themselves a favor by hearing this album".Kurt Cobain pointed to this record as being one of his favorite EPs, praising Tom Guay's guitar playing style as being "fucked-up, bending strings, borderline in-tune--that type of chaos".
The picture of the band on the front cover was taken by Michael Lavine, who had previously worked as a fashion photographer. He had been friends with Sean Yseult and was asked to take the band's picture for the cover despite having never done that kind of work before. The photo made an impact however, as no one else was releasing albums with their picture on the cover at the time.
The quotes "How's everything in the pimp business?" inscribed into the runout of Side A and "I don't know nobody named Iris" on Side B of the vinyl are from the 1976 film Taxi Driver.