Tex Avery took a year-long break from MGM from 1950 to 1951, during which time Dick Lundy took over his unit to do Caballero Droopy.
The Crisco Kid is a spoof on the western character, Cisco Kid. Crisco was a popular postwar solid vegetable shortening used in cooking.
The time Droopy plays is "Cielito Lindo," which means "Beautiful Heaven." He also dances the Mexican Hat Dance with the wolf.