Oldham is a native of Center Star, Alabama, United States. He was blinded in his right eye as a child; when reaching for a frying pan, he was hit in the eye by a spoon he knocked from a shelf. Schoolmates gave him the name "Spooner" as a result.
Oldham started his career in music by playing piano in bands during high school. He then attended classes at the University of North Alabama but turned instead to playing at FAME Studios. He moved to Memphis, Tennessee in 1967 and teamed with Penn at Chips Moman's American Studios.
Oldham later moved to Los Angeles and has continued to be a sought-after backing musician, recording and performing with such artists as Bob Dylan, Aretha Franklin, Delaney Bramlett, Willy DeVille, Joe Cocker, the Hacienda Brothers, Linda Ronstadt, Jackson Browne, the Everly Brothers, Bob Seger, Dickey Betts, Cat Power, J.J. Cale, Frank Black, and The Mountain Goats.

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