Physical was created and written by Annie Weisman and was reported to be nearing an Apple series order as early as January 2020, with Tomorrow Studios producing.

Rose Byrne was reported as headlining the series as early as January 2020, before being officially confirmed in the role of Sheila Rubin in December 2020.

Zooey Deschanel joined the cast in October 2022 for the third season, playing sitcom star and aerobics instructor Kelly Kilmartin, a character who also serves as a manifestation of Sheila's mental illness.

The character of Zeke Breem was recast between seasons, played by Ian Ousley in season one before Emjay Anthony took over the role in seasons two and three.

Craig Gillespie, Liza Johnson, and Stephanie Laing were announced as directors in December 2020, with Gillespie directing the pilot episode.

Filming for the first season took place from November 2020 to March 2021, and the second season was shot from November 2021 to March 2022.

The show's American critical reception improved dramatically across its run, with season one at 65% on Rotten Tomatoes rising to 92% for season two and 93% for the final season.

German magazine Spiegel praised the series for keeping its satirical edge on consumerism rather than turning into a conventional self-empowerment drama, suggesting this unconventional tone may explain the harsher ratings it received from American critics.