And from NPR some years ago:
“One night, I was on stage, and there was this beautiful little girl — she was probably 8 years old at the time,” Parton says. “And she had this beautiful red hair, this beautiful skin, these beautiful green eyes, and she was looking up at me, holding, you know, for an autograph. I said, ‘Well, you’re the prettiest little thing I ever saw. So what is your name?’ And she said, ‘Jolene.’ And I said, ‘Jolene. Jolene. Jolene. Jolene.’ I said, ‘That is pretty. That sounds like a song. I’m going to write a song about that.'”
The story of the song itself is inspired by a red-headed teller at Parton’s bank who flirted a lot with Parton’s husband.
“She got this terrible crush on my husband,” Parton says. “And he just loved going to the bank because she paid him so much attention. It was kinda like a running joke between us — when I was saying, ‘Hell, you’re spending a lot of time at the bank. I don’t believe we’ve got that kind of money.’ So it’s really an innocent song all around, but sounds like a dreadful one.”