diff --git a/packages/components/src/theme/color-algorithms.ts b/packages/components/src/theme/color-algorithms.ts
new file mode 100644
index 00000000000000..7c96a8d45cf1b1
--- /dev/null
+++ b/packages/components/src/theme/color-algorithms.ts
@@ -0,0 +1,114 @@
+/**
+ * External dependencies
+ */
+import { colord, extend } from 'colord';
+import a11yPlugin from 'colord/plugins/a11y';
+import namesPlugin from 'colord/plugins/names';
+
+/**
+ * Internal dependencies
+ */
+import type { ThemeInputValues, ThemeOutputValues } from './types';
+import { COLORS } from '../utils';
+
+extend( [ namesPlugin, a11yPlugin ] );
+
+export function generateThemeVariables(
+	inputs: ThemeInputValues
+): ThemeOutputValues {
+	validateInputs( inputs );
+
+	return {
+		colors: {
+			...generateAccentDependentColors( inputs.accent ),
+			...generateBackgroundDependentColors( inputs.background ),
+		},
+	};
+}
+
+// TODO: Add unit tests
+function validateInputs( inputs: ThemeInputValues ) {
+	for ( const [ key, value ] of Object.entries( inputs ) ) {
+		if ( ! colord( value ).isValid() ) {
+			// eslint-disable-next-line no-console
+			console.warn(
+				`wp.components.Theme: "${ value }" is not a valid color value for the '${ key }' prop.`
+			);
+		}
+	}
+
+	if (
+		inputs.background &&
+		! colord( inputs.background ).isReadable(
+			inputs.accent || COLORS.ui.theme
+		)
+	) {
+		// eslint-disable-next-line no-console
+		console.warn(
+			`wp.components.Theme: The background color provided ("${ inputs.background }") does not have sufficient contrast against the accent color ("${ inputs.accent }").`
+		);
+	}
+}
+
+function generateAccentDependentColors( accent?: string ) {
+	if ( ! accent ) return {};
+
+	return {
+		accent,
+		accentDarker10: colord( accent ).darken( 0.1 ).toHex(),
+		accentDarker20: colord( accent ).darken( 0.2 ).toHex(),
+		accentInverted: getForegroundForColor( accent ),
+	};
+}
+
+function generateBackgroundDependentColors( background?: string ) {
+	if ( ! background ) return {};
+
+	const foreground = getForegroundForColor( background );
+
+	return {
+		background,
+		foreground,
+		foregroundInverted: getForegroundForColor( foreground ),
+		gray: generateShades( background, foreground ),
+	};
+}
+
+function getForegroundForColor( color: string ) {
+	return colord( color ).isDark() ? COLORS.white : COLORS.gray[ 900 ];
+}
+
+// TODO: Add unit test so the result of this matches the default case (#fff to #1e1e1e)
+function generateShades( background: string, foreground: string ) {
+	// How much darkness you need to add to #fff to get the COLORS.gray[n] color
+	const SHADES = {
+		100: 0.06,
+		200: 0.121,
+		300: 0.132,
+		400: 0.2,
+		600: 0.42,
+		700: 0.543,
+		800: 0.821,
+	};
+
+	// Darkness of COLORS.gray[ 900 ], relative to #fff
+	const limit = 0.884;
+
+	const direction = colord( background ).isDark() ? 'lighten' : 'darken';
+
+	// Lightness delta between the background and foreground colors
+	const range =
+		Math.abs(
+			colord( background ).toHsl().l - colord( foreground ).toHsl().l
+		) / 100;
+
+	const result: Record< number, string > = {};
+
+	Object.entries( SHADES ).forEach( ( [ key, value ] ) => {
+		result[ parseInt( key ) ] = colord( background )
+			[ direction ]( ( value / limit ) * range )
+			.toHex();
+	} );
+
+	return result as ThemeOutputValues[ 'colors' ][ 'gray' ];
+}
diff --git a/packages/components/src/theme/index.tsx b/packages/components/src/theme/index.tsx
index 7504c7d5362909..67d0b5eb864d60 100644
--- a/packages/components/src/theme/index.tsx
+++ b/packages/components/src/theme/index.tsx
@@ -1,18 +1,10 @@
-/**
- * External dependencies
- */
-import { colord, extend } from 'colord';
-import a11yPlugin from 'colord/plugins/a11y';
-import namesPlugin from 'colord/plugins/names';
-
 /**
  * Internal dependencies
  */
 import type { ThemeProps } from './types';
 import type { WordPressComponentProps } from '../ui/context';
 import { Wrapper } from './styles';
-
-extend( [ namesPlugin, a11yPlugin ] );
+import { generateThemeVariables } from './color-algorithms';
 
 /**
  * `Theme` allows defining theme variables for components in the `@wordpress/components` package.
@@ -37,15 +29,9 @@ extend( [ namesPlugin, a11yPlugin ] );
  * ```
  */
 function Theme( props: WordPressComponentProps< ThemeProps, 'div', true > ) {
-	const { accent } = props;
-	if ( accent && ! colord( accent ).isValid() ) {
-		// eslint-disable-next-line no-console
-		console.warn(
-			`wp.components.Theme: "${ accent }" is not a valid color value for the 'accent' prop.`
-		);
-	}
+	const themeVariables = generateThemeVariables( props );
 
-	return <Wrapper { ...props } />;
+	return <Wrapper { ...themeVariables } />;
 }
 
 export default Theme;
diff --git a/packages/components/src/theme/styles.ts b/packages/components/src/theme/styles.ts
index 9c15d6fc97b49f..fbe7c15413663d 100644
--- a/packages/components/src/theme/styles.ts
+++ b/packages/components/src/theme/styles.ts
@@ -1,97 +1,35 @@
 /**
  * External dependencies
  */
-import { colord } from 'colord';
 import styled from '@emotion/styled';
 import { css } from '@emotion/react';
 
 /**
  * Internal dependencies
  */
-import type { ThemeProps } from './types';
-import { COLORS } from '../utils';
+import type { ThemeOutputValues } from './types';
 
-const getForegroundForColor = ( color: string ) =>
-	colord( color ).isDark() ? COLORS.white : COLORS.gray[ 900 ];
-
-const accentColor = ( { accent }: ThemeProps ) =>
-	accent
-		? css`
-				--wp-components-color-accent: ${ accent };
-				--wp-components-color-accent-darker-10: ${ colord( accent )
-					.darken( 0.1 )
-					.toHex() };
-				--wp-components-color-accent-darker-20: ${ colord( accent )
-					.darken( 0.2 )
-					.toHex() };
-				--wp-components-color-accent-inverted: ${ getForegroundForColor(
-					accent
-				) };
-		  `
-		: undefined;
-
-// TODO: Add unit test so the result of this matches the default case (#fff to #1e1e1e)
-function generateShades( background: string, foreground: string ) {
-	// Start from #fff (background)
-	const shades = {
-		100: 0.06,
-		200: 0.121,
-		300: 0.132,
-		400: 0.2,
-		600: 0.42,
-		700: 0.543,
-		800: 0.821,
-	};
-
-	// Darkness of COLORS.gray[ 900 ], relative to #fff
-	const limit = 0.884;
-
-	const direction = colord( background ).isDark() ? 'lighten' : 'darken';
-	const range =
-		Math.abs(
-			colord( background ).toHsl().l - colord( foreground ).toHsl().l
-		) / 100;
-
-	const result: Record< string, string > = {};
-
-	Object.entries( shades ).forEach( ( [ k, v ] ) => {
-		result[ k ] = colord( background )
-			[ direction ]( ( v / limit ) * range )
-			.toHex();
-	} );
-
-	return result;
-}
-
-const backgroundColor = ( { accent, background }: ThemeProps ) => {
-	if ( ! background ) return;
-
-	const foreground = getForegroundForColor( background );
-
-	// TODO: Add unit test
-	if ( ! colord( background ).isReadable( accent || COLORS.ui.theme ) ) {
-		// eslint-disable-next-line no-console
-		console.warn(
-			`wp.components.Theme: The background color provided ("${ background }") does not have sufficient contrast against the accent color ("${ accent }").`
-		);
-	}
-
-	const shades = Object.entries( generateShades( background, foreground ) )
+const colorVariables = ( { colors }: ThemeOutputValues ) => {
+	const shades = Object.entries( colors.gray || {} )
 		.map( ( [ k, v ] ) => `--wp-components-color-gray-${ k }: ${ v };` )
 		.join( '' );
 
-	return css`
-		--wp-components-color-background: ${ background };
-		--wp-components-color-foreground: ${ foreground };
-		--wp-components-color-foreground-inverted: ${ getForegroundForColor(
-			foreground
-		) };
+	return [
+		css`
+			--wp-components-color-accent: ${ colors.accent };
+			--wp-components-color-accent-darker-10: ${ colors.accentDarker10 };
+			--wp-components-color-accent-darker-20: ${ colors.accentDarker20 };
+			--wp-components-color-accent-inverted: ${ colors.accentInverted };
+
+			--wp-components-color-background: ${ colors.background };
+			--wp-components-color-foreground: ${ colors.foreground };
+			--wp-components-color-foreground-inverted: ${ colors.foregroundInverted };
 
-		${ shades }
-	`;
+			${ shades }
+		`,
+	];
 };
 
-export const Wrapper = styled.div< ThemeProps >`
-	${ accentColor }
-	${ backgroundColor }
+export const Wrapper = styled.div< ThemeOutputValues >`
+	${ colorVariables }
 `;
diff --git a/packages/components/src/theme/types.ts b/packages/components/src/theme/types.ts
index 49dc51538862c0..7426fc7019b80c 100644
--- a/packages/components/src/theme/types.ts
+++ b/packages/components/src/theme/types.ts
@@ -3,7 +3,7 @@
  */
 import type { ReactNode } from 'react';
 
-export type ThemeProps = {
+export type ThemeInputValues = {
 	/**
 	 * Used to set the accent color (used by components as the primary color).
 	 *
@@ -14,7 +14,36 @@ export type ThemeProps = {
 	 * `var(--my-custom-property)`) are _not_ supported values for this property.
 	 */
 	accent?: string;
+	/**
+	 * TODO: Write description
+	 */
 	background?: string;
+};
+
+export type ThemeOutputValues = {
+	colors: Partial< {
+		accent: string;
+		accentDarker10: string;
+		accentDarker20: string;
+		/** Foreground color to use when accent color is the background. */
+		accentInverted: string;
+		background: string;
+		foreground: string;
+		/** Foreground color to use when foreground color is the background. */
+		foregroundInverted: string;
+		gray: {
+			100: string;
+			200: string;
+			300: string;
+			400: string;
+			600: string;
+			700: string;
+			800: string;
+		};
+	} >;
+};
+
+export type ThemeProps = ThemeInputValues & {
 	/**
 	 * The children elements.
 	 */
diff --git a/packages/components/src/utils/theme-variables.scss b/packages/components/src/utils/theme-variables.scss
index 6f23bb7afd33a6..872b42c84368a7 100644
--- a/packages/components/src/utils/theme-variables.scss
+++ b/packages/components/src/utils/theme-variables.scss
@@ -16,6 +16,10 @@ $components-color-foreground: var(--wp-components-color-foreground, $gray-900);
 // Used when placing text on the foreground color.
 $components-color-foreground-inverted: var(--wp-components-color-foreground-inverted, $white);
 
+$components-color-gray-100: var(--wp-components-color-gray-100, $gray-100);
+$components-color-gray-200: var(--wp-components-color-gray-200, $gray-200);
 $components-color-gray-300: var(--wp-components-color-gray-300, $gray-300);
 $components-color-gray-400: var(--wp-components-color-gray-400, $gray-400);
+$components-color-gray-600: var(--wp-components-color-gray-600, $gray-600);
 $components-color-gray-700: var(--wp-components-color-gray-700, $gray-700);
+$components-color-gray-800: var(--wp-components-color-gray-800, $gray-800);