It starts off at the Krusty Krab, where business is slow. As a result, Squidward decides to rest. Before he even gets a chance to start relaxing, a whole bunch of fishes come. Squidward freaks out when he realizes SpongeBob isn't making Krabby Patties. Squidward then finds SpongeBob in a barrel. He screams at him, resulting in SpongeBob melting out of the barrel. SpongeBob makes the food and serves everybody while Squidward finds a book in the barrel. Then, SpongeBob grabs it and puts it in between the two frying baskets.
Whenever Squidward tries to see the book, SpongeBob snatches the book from him, which happens twice. A few minutes later, SpongeBob takes a break and Squidward finds the book in the barrel again. Now that he finds out the book was a diary, Squidward reads SpongeBob's diary to everyone at the Krusty Krab. The first secret he reads is that SpongeBob clucks like a chicken whenever he sees plaid. Squidward sees Mr. Krabs wearing plaid, so he calls SpongeBob back. SpongeBob sees Mr. Krabs plaid so he clucks like a chicken, making Squidward and a fish laugh.
The second secret is that SpongeBob named his spatula "Fifi". This amuses everyone and when SpongeBob comes back asking what's going on, Patrick teases him about him naming his spatula Fifi. Embarrassed, SpongeBob nervously excuses himself to the kitchen.The last secret is that whenever he hears the Bikini Bottom Municipal Anthem, he dances around in his underwear.
Later, SpongeBob finds out Squidward has been reading his diary and gets embarrassed about Squidward reading his diary, crying, "Squidward, how could you?" Then, he runs away from the Krusty Krab, and bumps into Mr. Krabs. Since Mr. Krabs is wearing plaid, the second SpongeBob sees him, he acts like a chicken. Then he continues crying and runs into town.
Mr. Krabs scolds at Squidward for reading SpongeBob's diary and demands that he apologize for what he did, but Squidward just scoffs at this saying that SpongeBob will get over it. Squidward then finds a newspaper that talks about "JERK READS DIARY! LOCAL FRY COOK DEVASTATED!" Squidward just laughs at the paper. Then he goes in a taxi but the taxi driver just drives away. Later on, he goes to his house, only to find out that his loan was taken away.
Now, when Squidward sleeps on a bench, a couple of police recognize him and lock him in the stocks. Then, Patrick throws tomatoes at him. Squidward then apologizes to SpongeBob and he learns that he only read SpongeBob's work diary, which got published. SpongeBob also tells him he never read his secret personal diary, which would be really embarrassing.
A crowd comes to throw tomatoes at Squidward when SpongeBob tells them he forgave Squidward. Nat tells SpongeBob that Squidward is reading the secret personal diary. SpongeBob gets upset again and runs away. The episode ends with tomatoes being thrown at Squidward by the disgusted crowd, laughing as he reads SpongeBob's diary, saying, "I don't care! This is so worth it!"
Despite everyone at the Krusty Krab reading the diary, Squidward was the only one that was blamed. However, reading the diary was his idea.
All of the customers seemed to enjoy reading the diary until SpongeBob started to cry, which shows that they are very hypocritical, while blatantly pretending they didn't know it was SpongeBob's diary. They should have already known it was SpongeBob's though, since Squidward said it was his and was reading about him.
This is the third appearance of SpongeBob's diary. The first was in "Boating School" and the second was in "Gone."
The tomatoes being thrown at Squidward are identical to the one in "Krabby Land."
This is the third time SpongeBob has been humiliated by Squidward and the Krusty Krab customers. The first was in "Fools in April" and the second was in "Grandma's Kisses." He was also embarrassed at the Krusty Krab by Mr. Krabs when he was one of the Bikini Bottom Ghosts in "Pranks a Lot."
This is Squidward's second villainous appearance since "That Sinking Feeling," as he tried to make SpongeBob feel bad.
In "Model Sponge," he walks by Mr. Krabs wearing plaid golf pants.
In "Imitation Krabs," SpongeBob and Robot Krabs ("Plankton") sang the Bikini Bottom Anthem, and SpongeBob didn't dance in his underwear. It could have been an alternate anthem or due to it was being vocal instead of instrument. It could also be due to the instrumental part not being present.
It could be possible that SpongeBob developed those habits after the episodes took place.
SpongeBob and his work diary state that his spatula is named Fifi, yet in "All That Glitters" and other episodes it was called Spat. It could have been another spatula or that he renamed it.
This episode reveals that SpongeBob has two diaries, both which have been read by Squidward.
As of this episode, SpongeBob is now a critically-acclaimed author.
This episode once again reveals SpongeBob's spatula having the ability to make multiple copies of its head. This will not be shown again until the episode "Evil Spatula."
This is the third time the customers become ravenous and physical in the dining area due to an extended wait for the patties. The first time was "Truth or Square" and the second time being "Oral Report." Another, more technical, time was "Help Wanted," yet the nematodes did not have an extended wait in a sense.
This is the second time Mr. Krabs and SpongeBob are preparing the secret Krabby Patty formula from scratch. The first is "The Great Patty Caper."
Promotions referred to this episode as Diary of a Yellow Sponge which is a parody of the best selling children's book series, Diary of a Wimpy Kid.
This is the second time SpongeBob was crying and Squidward was happy in the end of an episode. The first was "InSPONGEiac."
This episode's title is a parody of the book "A Little Yellow Book of Lies" written by David B. Silva.
It may also be a parody of the film Little Black Book.
"I can't help but take off all my clothes and dance around in my underwear!" These words almost sound identical to a verse from the Ricky Martin hit, Livin' la Vida Loca, "She make you take your clothes off and go dancin' in the rain."
When SpongeBob took off his pants, his shape looked like the pants, and didn't show his feet.
In one scene, Squidward places the stereo on the order station, in the next scene, it is seen on top of the grill.
SpongeBob is shown leaving the Krusty Krab in his underwear. But when the scene cuts to Squidward leaving the Krusty Krab, SpongeBob is wearing his clothes again.
SpongeBob's spatula is named Fifi, but in mostly every other episode, his spatula's name is Spat.
When SpongeBob gives the people the Krabby Patties, they have lettuce but SpongeBob never put lettuce in him when he made the patties along with pickles.
When Mr. Krabs put SpongeBob in the exhaust vent, the vent was in the wrong spot. It was at the back of the kitchen, not near the front, where the grill is.
Despite this episode being called "Little Yellow Book," none of SpongeBob's diaries were even the color yellow. However, yellow could be refering to the color of SpongeBob.
SpongeBob made Krabby Patties in his head without lettuce or pickles. When he delivered the Krabby Patties, lettuce and pickles suddenly came out of his head.