diff --git a/packages/block-editor/src/components/block-inspector/index.js b/packages/block-editor/src/components/block-inspector/index.js
index 136cdef91286e..5c52ca62e01d6 100644
--- a/packages/block-editor/src/components/block-inspector/index.js
+++ b/packages/block-editor/src/components/block-inspector/index.js
@@ -300,7 +300,7 @@ const BlockInspectorSingleBlock = ( { clientId, blockName } ) => {
 					<InspectorControls.Slot group="styles" />
 					<InspectorControls.Slot
 						group="background"
-						label={ __( 'Background' ) }
+						label={ __( 'Background image' ) }
 					/>
 					<PositionControls />
 					<div>
diff --git a/packages/block-editor/src/components/global-styles/background-panel.js b/packages/block-editor/src/components/global-styles/background-panel.js
index c1354bbc4a4e1..ef1f9673d601f 100644
--- a/packages/block-editor/src/components/global-styles/background-panel.js
+++ b/packages/block-editor/src/components/global-styles/background-panel.js
@@ -40,6 +40,10 @@ import MediaReplaceFlow from '../media-replace-flow';
 import { store as blockEditorStore } from '../../store';
 
 const IMAGE_BACKGROUND_TYPE = 'image';
+const DEFAULT_CONTROLS = {
+	backgroundImage: true,
+	backgroundSize: false,
+};
 
 /**
  * Checks site settings to see if the background panel may be used.
@@ -135,28 +139,30 @@ export const backgroundPositionToCoords = ( value ) => {
 };
 
 function InspectorImagePreview( { label, filename, url: imgUrl } ) {
-	const imgLabel = label || getFilename( imgUrl );
+	const imgLabel =
+		label || getFilename( imgUrl ) || __( 'Add background image' );
+
 	return (
 		<ItemGroup as="span">
-			<HStack justify="flex-start" as="span">
-				<span
-					className={ classnames(
-						'block-editor-global-styles-background-panel__inspector-image-indicator-wrapper',
-						{
-							'has-image': imgUrl,
-						}
-					) }
-					aria-hidden
-				>
-					{ imgUrl && (
+			<HStack justify={ imgUrl ? 'flex-start' : 'center' } as="span">
+				{ imgUrl && (
+					<span
+						className={ classnames(
+							'block-editor-global-styles-background-panel__inspector-image-indicator-wrapper',
+							{
+								'has-image': imgUrl,
+							}
+						) }
+						aria-hidden
+					>
 						<span
 							className="block-editor-global-styles-background-panel__inspector-image-indicator"
 							style={ {
 								backgroundImage: `url(${ imgUrl })`,
 							} }
 						/>
-					) }
-				</span>
+					</span>
+				) }
 				<FlexItem as="span">
 					<Truncate
 						numberOfLines={ 1 }
@@ -247,7 +253,7 @@ function BackgroundImageToolsPanelItem( {
 
 	const onFilesDrop = ( filesList ) => {
 		mediaUpload( {
-			allowedTypes: [ 'image' ],
+			allowedTypes: [ IMAGE_BACKGROUND_TYPE ],
 			filesList,
 			onFileChange( [ image ] ) {
 				if ( isBlobURL( image?.url ) ) {
@@ -295,7 +301,7 @@ function BackgroundImageToolsPanelItem( {
 					onSelect={ onSelectMedia }
 					name={
 						<InspectorImagePreview
-							label={ __( 'Background image' ) }
+							label={ title }
 							filename={ title || __( 'Untitled' ) }
 							url={ url }
 						/>
@@ -518,6 +524,7 @@ function BackgroundToolsPanel( {
 	value,
 	panelId,
 	children,
+	headerLabel,
 } ) {
 	const resetAll = () => {
 		const updatedValue = resetAllFilter( value );
@@ -527,8 +534,8 @@ function BackgroundToolsPanel( {
 	return (
 		<VStack
 			as={ ToolsPanel }
-			spacing={ 6 }
-			label={ __( 'Background' ) }
+			spacing={ 4 }
+			label={ headerLabel }
 			resetAll={ resetAll }
 			panelId={ panelId }
 			dropdownMenuProps={ TOOLSPANEL_DROPDOWNMENU_PROPS }
@@ -538,11 +545,6 @@ function BackgroundToolsPanel( {
 	);
 }
 
-const DEFAULT_CONTROLS = {
-	backgroundImage: true,
-	backgroundSize: true,
-};
-
 export default function BackgroundPanel( {
 	as: Wrapper = BackgroundToolsPanel,
 	value,
@@ -552,6 +554,7 @@ export default function BackgroundPanel( {
 	panelId,
 	defaultControls = DEFAULT_CONTROLS,
 	defaultValues = {},
+	headerLabel = __( 'Background image' ),
 } ) {
 	const resetAllFilter = useCallback( ( previousValue ) => {
 		return {
@@ -568,6 +571,7 @@ export default function BackgroundPanel( {
 			value={ value }
 			onChange={ onChange }
 			panelId={ panelId }
+			headerLabel={ headerLabel }
 		>
 			<BackgroundImageToolsPanelItem
 				onChange={ onChange }
diff --git a/packages/block-editor/src/components/global-styles/style.scss b/packages/block-editor/src/components/global-styles/style.scss
index ab4407cd9b911..1630ac2abde57 100644
--- a/packages/block-editor/src/components/global-styles/style.scss
+++ b/packages/block-editor/src/components/global-styles/style.scss
@@ -81,7 +81,7 @@
 
 	button.components-button {
 		color: $gray-900;
-		box-shadow: inset 0 0 0 $border-width $gray-300;
+		box-shadow: inset 0 0 0 $border-width $gray-400;
 		width: 100%;
 		display: block;
 		height: $grid-unit-50;
@@ -111,17 +111,11 @@
 }
 
 .block-editor-global-styles-background-panel__inspector-image-indicator-wrapper {
-	background: #fff linear-gradient(-45deg, transparent 48%, $gray-300 48%, $gray-300 52%, transparent 52%); // Show a diagonal line (crossed out) for empty background image.
-	border-radius: $radius-round !important; // Override the default border-radius inherited from FlexItem.
-	box-shadow: inset 0 0 0 $border-width rgba(0, 0, 0, 0.2);
 	display: block;
 	width: 20px;
 	height: 20px;
 	flex: none;
-
-	&.has-image {
-		background: #fff; // No diagonal line for non-empty background image. A background color is in use to account for partially transparent images.
-	}
+	background: #fff;
 }
 
 .block-editor-global-styles-background-panel__inspector-image-indicator {
diff --git a/packages/block-editor/src/components/inspector-controls-tabs/styles-tab.js b/packages/block-editor/src/components/inspector-controls-tabs/styles-tab.js
index 8386b545c7250..e45805a51391a 100644
--- a/packages/block-editor/src/components/inspector-controls-tabs/styles-tab.js
+++ b/packages/block-editor/src/components/inspector-controls-tabs/styles-tab.js
@@ -30,7 +30,7 @@ const StylesTab = ( { blockName, clientId, hasBlockStyles } ) => {
 			/>
 			<InspectorControls.Slot
 				group="background"
-				label={ __( 'Background' ) }
+				label={ __( 'Background image' ) }
 			/>
 			<InspectorControls.Slot group="filter" />
 			<InspectorControls.Slot
diff --git a/packages/edit-site/src/components/global-styles/background-panel.js b/packages/edit-site/src/components/global-styles/background-panel.js
index cae8bdba61871..2addf109873aa 100644
--- a/packages/edit-site/src/components/global-styles/background-panel.js
+++ b/packages/edit-site/src/components/global-styles/background-panel.js
@@ -2,6 +2,7 @@
  * WordPress dependencies
  */
 import { privateApis as blockEditorPrivateApis } from '@wordpress/block-editor';
+import { __ } from '@wordpress/i18n';
 
 /**
  * Internal dependencies
@@ -28,13 +29,22 @@ export default function BackgroundPanel() {
 	} );
 	const [ settings ] = useGlobalSetting( '' );
 
+	const defaultControls = {
+		backgroundImage: true,
+		backgroundSize:
+			!! style?.background?.backgroundImage &&
+			!! inheritedStyle?.background?.backgroundImage,
+	};
+
 	return (
 		<StylesBackgroundPanel
 			inheritedValue={ inheritedStyle }
 			value={ style }
 			onChange={ setStyle }
 			settings={ settings }
+			headerLabel={ __( 'Image' ) }
 			defaultValues={ BACKGROUND_DEFAULT_VALUES }
+			defaultControls={ defaultControls }
 		/>
 	);
 }
diff --git a/packages/edit-site/src/components/global-styles/root-menu.js b/packages/edit-site/src/components/global-styles/root-menu.js
index 97598635f7b85..c747efee635d8 100644
--- a/packages/edit-site/src/components/global-styles/root-menu.js
+++ b/packages/edit-site/src/components/global-styles/root-menu.js
@@ -64,9 +64,9 @@ function RootMenu() {
 					<NavigationButtonAsItem
 						icon={ image }
 						path="/background"
-						aria-label={ __( 'Background styles' ) }
+						aria-label={ __( 'Background image styles' ) }
 					>
-						{ __( 'Background' ) }
+						{ __( 'Background image' ) }
 					</NavigationButtonAsItem>
 				) }
 			</ItemGroup>
diff --git a/packages/edit-site/src/components/global-styles/screen-background.js b/packages/edit-site/src/components/global-styles/screen-background.js
index 5e8a7832a42b4..e6d338ffcbef1 100644
--- a/packages/edit-site/src/components/global-styles/screen-background.js
+++ b/packages/edit-site/src/components/global-styles/screen-background.js
@@ -20,7 +20,7 @@ function ScreenBackground() {
 	const hasBackgroundPanel = useHasBackgroundPanel( settings );
 	return (
 		<>
-			<ScreenHeader title={ __( 'Background' ) } />
+			<ScreenHeader title={ __( 'Background image' ) } />
 			{ hasBackgroundPanel && <BackgroundPanel /> }
 		</>
 	);