Apple today released a new utility called Lion Recovery Disk Assistant, with the help of this utility you can create a recovery disk on an external Hard-Drive or U.S.B Pen Drive. The new Operating System of Apple OS X Lion does has the option of recovery by hitting Command + R key at boot up, but that is the only possible option and if anything goes wrong with that then to Install a fresh copy of Lion it will be necessary to Install Snow Leopard first as Lion does not support fresh installation. Also it will make the existence of Lion Boot Disk Creator absolutely unnecessary. OS X Lion does not anymore come in Disks so and it can only be Downloaded from the Apple Store.
To create an external Lion Recovery, download the Lion Recovery Disk Assistant application. Insert an external drive, launch the Lion Recovery Disk Assistant, select the drive where you would like to install, and follow the on screen instructions.
When the Lion Recovery Disk Assistant completes, the new partition will not be visible in the Finder or Disk Utility. To access Lion Recovery, reboot the computer while holding the Option key. Select Recovery HD from the Startup Manager.
The Lion Recovery Disk Assistant can be downloaded form here.
Now if you have created the recovery disk successfully that external drive will not show up in Finder or Disk Utility and when you want to boot up from this disk just hit the Option (Alt) key when you hear the boot chime while you boot up the Mac.
The new OS X Lion already has many options for recovery, it also has a Recovery Mode with which you can load up a browser-only mode which can be used for diagnostics or looking up support information.