Dimoxinil is a pun on the real-life hair restoration drug Minoxidil.
Homer's joy run through the streets of Springfield (when he sees he has hair) is a parody of the scene near the end of It's a Wonderful Life where George Bailey runs through the streets of Bedford Falls, saying "hello" to everything and everyone he sees.
Homer's assistant Karl was played by openly gay actor Harvey Fierstein, and it is at least implied that Karl is also gay or bisexual. This marks the beginning of a trend of several LGBT characters on The Simpsons.
In the opening sequence, Homer's scream is to be different.
The kiss between Karl and Homer is the first animated male-on-male kiss to air on network television (though the WB animated sitcom Mission Hill -- which had Simpsons showrunners Bill Oakley and Josh Weinstein as show creators -- is erroneously credited as the first time a man-on-man kiss has been seen in an animated primetime series, Mission Hill's male-on-male kiss is actually considered the first male-on-male kiss between two men established to be in a homosexual relationship).
Homer's hairstyles change several times throughout the episode. He starts off with long hair, then to a 1970s style small afro, then to a more close cropped 1950s type haircut, and finally a 1980s "Miami Vice" style angular cut with a small ponytail.
During Homer's speech (after he has lost his hair) about cutting costs in the plant, one executive remarks, "The nerve of a bald man to think he can run the power plant," which is ironic considering that Mr. Burns, who is bald, is in charge of the plant.
This episode marks the first appearance of Lenny, Carl and Charlie in Season two.