In the Panopto Recording interface, you'll need to set-up the Video and Audio inputs for your video.
Video Set-Up
The Video [1] screen will appear first where you can confirm the recording camera.
Audio Set-up
Click on Audio [2] on the top menu bar to select the audio source you'll be using.
Background Set-up
You can configure your background by selecting Options [1] (the gear icon in the bottom right corner). Here you can Blur your background [2], use the Default background [3], or add your own custom background [4]. Selecting Off displays your camera view with no background.