Remember all, this is for a totally new, blank hard drive in your system...this isn't about recovering or reinstalling your OS on a system.
When you loaded up Lion, it created a special partition on your HD for recovery.
This is from the excellent Ars review:
When you loaded up Lion, it created a special partition on your HD for recovery.
This is from the excellent Ars review:
The first and most lasting surprise is that the Lion installer will actually repartition the disk, carving out a 650MB slice of the disk for its own use.
Don't worry, all existing data on the disk will be preserved. (Mac OS X has had the ability to add partitions to existing disks without destroying any data for many years now.) All that's required is enough free space to reshuffle the data as needed to make room for the new partition.
A subset of the files copied to the recovery partition is also copied to the installation target disk by the installer and blessed as the new bootable system. This is what the Lion installer reboots into. The files to install will be read from the Lion installer application downloaded earlier from the Mac App Store. After the installation is complete, the temporary boot files are removed, but the Recovery HD partition remains on the disk. Hold down ⌘R during system startup to automatically boot into the Recovery HD partition. (Holding down the option key during startup—not a new feature in Lion—will also show the Recovery HD partition as one of the boot volume choices.)