diff --git a/news/11358.removal.rst b/news/11358.removal.rst
new file mode 100644
index 00000000000..9767949b48b
--- /dev/null
+++ b/news/11358.removal.rst
@@ -0,0 +1,2 @@
+Deprecate ``--install-options`` which forces pip to use the deprecated ``install``
+command of ``setuptools``.
diff --git a/src/pip/_internal/cli/cmdoptions.py b/src/pip/_internal/cli/cmdoptions.py
index f0950332115..9ff7a3d07de 100644
--- a/src/pip/_internal/cli/cmdoptions.py
+++ b/src/pip/_internal/cli/cmdoptions.py
@@ -59,31 +59,6 @@ def make_option_group(group: Dict[str, Any], parser: ConfigOptionParser) -> Opti
     return option_group
 
 
-def check_install_build_global(
-    options: Values, check_options: Optional[Values] = None
-) -> None:
-    """Disable wheels if per-setup.py call options are set.
-
-    :param options: The OptionParser options to update.
-    :param check_options: The options to check, if not supplied defaults to
-        options.
-    """
-    if check_options is None:
-        check_options = options
-
-    def getname(n: str) -> Optional[Any]:
-        return getattr(check_options, n, None)
-
-    names = ["build_options", "global_options", "install_options"]
-    if any(map(getname, names)):
-        control = options.format_control
-        control.disallow_binaries()
-        logger.warning(
-            "Disabling all use of wheels due to the use of --build-option "
-            "/ --global-option / --install-option.",
-        )
-
-
 def check_dist_restriction(options: Values, check_target: bool = False) -> None:
     """Function for determining if custom platform options are allowed.
 
diff --git a/src/pip/_internal/commands/download.py b/src/pip/_internal/commands/download.py
index 26a5080c790..4132e089883 100644
--- a/src/pip/_internal/commands/download.py
+++ b/src/pip/_internal/commands/download.py
@@ -8,6 +8,10 @@
 from pip._internal.cli.req_command import RequirementCommand, with_cleanup
 from pip._internal.cli.status_codes import SUCCESS
 from pip._internal.operations.build.build_tracker import get_build_tracker
+from pip._internal.req.req_install import (
+    LegacySetupPyOptionsCheckMode,
+    check_legacy_setup_py_options,
+)
 from pip._internal.utils.misc import ensure_dir, normalize_path, write_output
 from pip._internal.utils.temp_dir import TempDirectory
 
@@ -105,6 +109,9 @@ def run(self, options: Values, args: List[str]) -> int:
         )
 
         reqs = self.get_requirements(args, options, finder, session)
+        check_legacy_setup_py_options(
+            options, reqs, LegacySetupPyOptionsCheckMode.DOWNLOAD
+        )
 
         preparer = self.make_requirement_preparer(
             temp_build_dir=directory,
diff --git a/src/pip/_internal/commands/install.py b/src/pip/_internal/commands/install.py
index b37303caade..e081c27d2d2 100644
--- a/src/pip/_internal/commands/install.py
+++ b/src/pip/_internal/commands/install.py
@@ -27,7 +27,11 @@
 from pip._internal.operations.build.build_tracker import get_build_tracker
 from pip._internal.operations.check import ConflictDetails, check_install_conflicts
 from pip._internal.req import install_given_reqs
-from pip._internal.req.req_install import InstallRequirement
+from pip._internal.req.req_install import (
+    InstallRequirement,
+    LegacySetupPyOptionsCheckMode,
+    check_legacy_setup_py_options,
+)
 from pip._internal.utils.compat import WINDOWS
 from pip._internal.utils.deprecation import (
     LegacyInstallReasonFailedBdistWheel,
@@ -280,7 +284,6 @@ def run(self, options: Values, args: List[str]) -> int:
         if options.use_user_site and options.target_dir is not None:
             raise CommandError("Can not combine '--user' and '--target'")
 
-        cmdoptions.check_install_build_global(options)
         upgrade_strategy = "to-satisfy-only"
         if options.upgrade:
             upgrade_strategy = options.upgrade_strategy
@@ -339,6 +342,9 @@ def run(self, options: Values, args: List[str]) -> int:
 
         try:
             reqs = self.get_requirements(args, options, finder, session)
+            check_legacy_setup_py_options(
+                options, reqs, LegacySetupPyOptionsCheckMode.INSTALL
+            )
 
             if "no-binary-enable-wheel-cache" in options.features_enabled:
                 # TODO: remove format_control from WheelCache when the deprecation cycle
@@ -446,7 +452,7 @@ def run(self, options: Values, args: List[str]) -> int:
                 wheel_cache=wheel_cache,
                 verify=True,
                 build_options=[],
-                global_options=[],
+                global_options=global_options,
             )
 
             # If we're using PEP 517, we cannot do a legacy setup.py install
diff --git a/src/pip/_internal/commands/wheel.py b/src/pip/_internal/commands/wheel.py
index 5ddb3bd6ceb..1afbd562c65 100644
--- a/src/pip/_internal/commands/wheel.py
+++ b/src/pip/_internal/commands/wheel.py
@@ -10,7 +10,11 @@
 from pip._internal.cli.status_codes import SUCCESS
 from pip._internal.exceptions import CommandError
 from pip._internal.operations.build.build_tracker import get_build_tracker
-from pip._internal.req.req_install import InstallRequirement
+from pip._internal.req.req_install import (
+    InstallRequirement,
+    LegacySetupPyOptionsCheckMode,
+    check_legacy_setup_py_options,
+)
 from pip._internal.utils.deprecation import deprecated
 from pip._internal.utils.misc import ensure_dir, normalize_path
 from pip._internal.utils.temp_dir import TempDirectory
@@ -101,8 +105,6 @@ def add_options(self) -> None:
 
     @with_cleanup
     def run(self, options: Values, args: List[str]) -> int:
-        cmdoptions.check_install_build_global(options)
-
         session = self.get_default_session(options)
 
         finder = self._build_package_finder(options, session)
@@ -120,6 +122,9 @@ def run(self, options: Values, args: List[str]) -> int:
         )
 
         reqs = self.get_requirements(args, options, finder, session)
+        check_legacy_setup_py_options(
+            options, reqs, LegacySetupPyOptionsCheckMode.WHEEL
+        )
 
         if "no-binary-enable-wheel-cache" in options.features_enabled:
             # TODO: remove format_control from WheelCache when the deprecation cycle
diff --git a/src/pip/_internal/req/req_file.py b/src/pip/_internal/req/req_file.py
index 06ea6f277aa..e4b4a99627c 100644
--- a/src/pip/_internal/req/req_file.py
+++ b/src/pip/_internal/req/req_file.py
@@ -186,10 +186,6 @@ def handle_requirement_line(
             constraint=line.constraint,
         )
     else:
-        if options:
-            # Disable wheels if the user has specified build options
-            cmdoptions.check_install_build_global(options, line.opts)
-
         # get the options that apply to requirements
         req_options = {}
         for dest in SUPPORTED_OPTIONS_REQ_DEST:
diff --git a/src/pip/_internal/req/req_install.py b/src/pip/_internal/req/req_install.py
index 88d481dfe5c..5f29261c252 100644
--- a/src/pip/_internal/req/req_install.py
+++ b/src/pip/_internal/req/req_install.py
@@ -8,6 +8,8 @@
 import sys
 import uuid
 import zipfile
+from enum import Enum
+from optparse import Values
 from typing import Any, Collection, Dict, Iterable, List, Optional, Sequence, Union
 
 from pip._vendor.packaging.markers import Marker
@@ -876,3 +878,65 @@ def check_invalid_constraint_type(req: InstallRequirement) -> str:
         )
 
     return problem
+
+
+def _has_option(options: Values, reqs: List[InstallRequirement], option: str) -> bool:
+    if getattr(options, option, None):
+        return True
+    for req in reqs:
+        if getattr(req, option, None):
+            return True
+    return False
+
+
+def _install_option_ignored(
+    install_options: List[str], reqs: List[InstallRequirement]
+) -> bool:
+    for req in reqs:
+        if (install_options or req.install_options) and not req.use_pep517:
+            return False
+    return True
+
+
+class LegacySetupPyOptionsCheckMode(Enum):
+    INSTALL = 1
+    WHEEL = 2
+    DOWNLOAD = 3
+
+
+def check_legacy_setup_py_options(
+    options: Values,
+    reqs: List[InstallRequirement],
+    mode: LegacySetupPyOptionsCheckMode,
+) -> None:
+    has_install_options = _has_option(options, reqs, "install_options")
+    has_build_options = _has_option(options, reqs, "build_options")
+    has_global_options = _has_option(options, reqs, "global_options")
+    legacy_setup_py_options_present = (
+        has_install_options or has_build_options or has_global_options
+    )
+    if not legacy_setup_py_options_present:
+        return
+
+    options.format_control.disallow_binaries()
+    logger.warning(
+        "Implying --no-binary=:all: due to the presence of "
+        "--build-option / --global-option / --install-option. "
+        "Consider using --config-settings for more flexibility.",
+    )
+    if mode == LegacySetupPyOptionsCheckMode.INSTALL and has_install_options:
+        if _install_option_ignored(options.install_options, reqs):
+            logger.warning(
+                "Ignoring --install-option when building using PEP 517",
+            )
+        else:
+            deprecated(
+                reason=(
+                    "--install-option is deprecated because "
+                    "it forces pip to use the 'setup.py install' "
+                    "command which is itself deprecated."
+                ),
+                issue=11358,
+                replacement="to use --config-settings",
+                gone_in="23.1",
+            )
diff --git a/tests/functional/test_install.py b/tests/functional/test_install.py
index f4f8d4efb0c..f4e0a53bec4 100644
--- a/tests/functional/test_install.py
+++ b/tests/functional/test_install.py
@@ -842,6 +842,8 @@ def test_install_global_option(script: PipTestEnvironment) -> None:
     )
     assert "INITools==0.1\n" in result.stdout
     assert not result.files_created
+    assert "Implying --no-binary=:all:" in result.stderr
+    assert "Consider using --config-settings" in result.stderr
 
 
 def test_install_with_hacked_egg_info(
diff --git a/tests/functional/test_install_reqs.py b/tests/functional/test_install_reqs.py
index c5fc11dd7a5..19c526aab09 100644
--- a/tests/functional/test_install_reqs.py
+++ b/tests/functional/test_install_reqs.py
@@ -342,7 +342,7 @@ def test_install_option_in_requirements_file_overrides_cli(
     reqs_file = script.scratch_path.joinpath("reqs.txt")
     reqs_file.write_text("simple --install-option='-O0'")
 
-    script.pip(
+    result = script.pip(
         "install",
         "--no-index",
         "-f",
@@ -355,6 +355,9 @@ def test_install_option_in_requirements_file_overrides_cli(
     simple_args = simple_sdist.args()
     assert "install" in simple_args
     assert simple_args.index("-O1") < simple_args.index("-O0")
+    assert "Implying --no-binary=:all:" in result.stderr
+    assert "Consider using --config-settings" in result.stderr
+    assert "--install-option is deprecated" in result.stderr
 
 
 def test_constraints_not_installed_by_default(
diff --git a/tests/unit/test_req_file.py b/tests/unit/test_req_file.py
index 6b3712b0c7d..02b1ba230a3 100644
--- a/tests/unit/test_req_file.py
+++ b/tests/unit/test_req_file.py
@@ -881,5 +881,3 @@ def test_install_requirements_with_options(
                 < args.index("install")
                 < args.index(install_option)
             )
-        assert options.format_control.no_binary == {":all:"}
-        assert options.format_control.only_binary == set()