The show is set, and currently filming, in the sun-drenched British seaside town of Margate in Kent. The name of the series, "Dreamland", refers to the fairground and amusement arcade that can be found in the town. It is considered the oldest amusement park in the UK and has also been the setting for a number of other comedies, including "Two Weeks to Live", also from Sky Comedy, starring Mawaan Rizwan and Maisie Adam.
It was also the setting of the original short film on which the series is based. Margate has been having a resurgence recently. Harry Styles chose the seaside town for his pop-up Pleasing shop this summer, rock band The Libertines opened a hotel there, and it's home to retro roller discos and inclusive LGBTQ+ venues.