diff --git a/homeassistant/components/lovelace/__init__.py b/homeassistant/components/lovelace/__init__.py
index d8fe591a0ba..6f5de83fd30 100644
--- a/homeassistant/components/lovelace/__init__.py
+++ b/homeassistant/components/lovelace/__init__.py
@@ -140,6 +140,7 @@ async def async_setup(hass: HomeAssistant, config: ConfigType) -> bool:
 
     hass.data[DOMAIN] = {
         # We store a dictionary mapping url_path: config. None is the default.
+        "mode": mode,
         "dashboards": {None: default_config},
         "resources": resource_collection,
         "yaml_dashboards": config[DOMAIN].get(CONF_DASHBOARDS, {}),
diff --git a/homeassistant/components/lovelace/system_health.py b/homeassistant/components/lovelace/system_health.py
index 29b53251f21..96ae2f47540 100644
--- a/homeassistant/components/lovelace/system_health.py
+++ b/homeassistant/components/lovelace/system_health.py
@@ -38,7 +38,9 @@ async def system_health_info(hass):
             else:
                 health_info[key] = dashboard[key]
 
-    if MODE_STORAGE in modes:
+    if hass.data[DOMAIN][CONF_MODE] == MODE_YAML:
+        health_info[CONF_MODE] = MODE_YAML
+    elif MODE_STORAGE in modes:
         health_info[CONF_MODE] = MODE_STORAGE
     elif MODE_YAML in modes:
         health_info[CONF_MODE] = MODE_YAML