Means was born in Porcupine, South Dakota, on the Pine Ridge Indian Reservation, to Theodora Louise Feather and Walter "Hank" Means. His mother was a Yankton Dakota from Greenwood, South Dakota, and his father, an Oglala Lakota. As well as Russell, the family had two other boys (William "Bill" and Warren ) and three girls (Madonna, Mabel Ann and Phyllis). He was given the name Wanbli Ohitika by his mother, which means "Brave Eagle" in the Lakota language.

In the 1980s, AIM divided into several competing factions, in part over differences among members regarding support for the indigenous peoples in Nicaragua. Means supported the Miskito group MISURASATA (later known as YATAMA), which was allied with the Contras. He traveled to Nicaragua in 1985 and 1986 on fact-finding tours. He came to believe that the Miskito as a people were being targeted for elimination. Some AIM members supported the Sandinistas of the national government, although they had forced removal of thousands of Miskito from their traditional territory. At that time, the "Grand Governing Council" of AIM, based in Minnesota, asked Means to cease representing himself as a leader of AIM. Other chapters of AIM continued to support Means. On January 8, 1988, Means held a press conference to announce his retirement from AIM, saying it had achieved its goals. That January, the "AIM Grand Governing Council", headed by the Bellecourt brothers, released a press release noting this was the sixth resignation by Means since 1974, and asking the press to "never again report either that he is a founder of the American Indian Movement, or [that] he is a leader of the American Indian Movement". The "AIM General Governing Council" noted there were many open issues and legislation regarding Native Americans for which they were continuing to work. In 1993, the organization divided officially into two main factions: "AIM Grand Governing Council", based in Minnesota, which copyrighted the name; and American Indian Movement of Colorado, based in Colorado and allied with Means.

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