Throughout the late 80's, Leon took a hiatus from recording and left his post at Paradise Records. He returned to the studio in 1991 to release Anything Can Happen, which was produced by Bruce Hornsby and released on Virgin Records. Following this release, Leon decided to open his third label, Leon Russell Records, which was announced with the release of its debut album, Hymns of Christmas, an orchestral album conducted by and featuring Leon on piano and consisting of classic Christmas pieces performed entirely instrumentally. This project was the first in a string of genre-specific endeavors that allowed Leon to dive-deeper into the genres that most inspired him; from his album of standards with the Nashville Symphony titled Moonlight & Love Songs, to the Gospel focused A Mighty Flood, and the honky-tonk sounds of Bad Country. 

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Leon Russell Records released more Leon albums (12) than any other label. Leon's final recording, On A Distant Shore, however was released on Palmetto Records posthumously on September 22, 2017.