At an American Horror Story panel in North Hollywood last night, series creator Ryan Murphy revealed the setting of his show's mysterious second season.

"Season 2 is set on the East Coast at an institution for the criminally insane that is run by Jessica," Murphy told reporters, referring to the new character Emmy winner Jessica Lange will take on and explaining that a hint was dropped during a "Birth" scene by Sarah Paulson's Billie Dean.

It was something she "says to Jessica and Taisa as she's sage-ing the house and talking about places where evil collects: We talk about institutions and prisons and things like that. That was the clue."

Murphy added that the second season will take place in a "time period" and is a "completely different world" from season one.

Yes, multiple cast members will be returning, but all will be portraying different characters.

And, yes, The Voice judge Adam Levine has signed on for a recurring role.

"The second season is fun, sexy and baroque," Murphy said. "It has a lot of meat to it; it's a really gritty part. He's with a girl and they play characters called The Lovers."

Earlier this month, FX confirmed the casting of French actress Lizzie Brocheré as a young woman who would serve as a nemesis to Lange. We'd have to imagine, based on this new intel, that she's a patient at the asylum.

Matt Richenthal is the Editor in Chief of TV Fanatic. Follow him on Twitter and on Google+.