Correcting myself: The creative resurgence of Odetta occurred not in the 1980s, but rather at the end of the 1990s, with two terrific albums (Blues Everywhere I Go and For Ella) recorded when she was almost seventy years old (!).
The Grateful Dead’s **In the Dark **, released in 1987, contained their only Top 10 hit, Touch of Grey.
In fact, they originally formed in 1961, and their core foursome has been together since 1970 (and they’re still active).
Rush put out Power Windows, Permanent Waves, Grace Under Pressure, Signals, Exit…Stage Left, and A Show of Hands in the 1980’s. Others too, but not as strong as these. I think Roger Waters’ The Pros and Cons of Hitchhiking is his masterpiece, that came out in 1984. Both Rush and Pink Floyd were around in the 60’s in one form or another.
While maybe not quite as good as their run of 4 albums in the mid 70s (Sheer Heart Attack through News of the World), I think that Queen’s “The Works” (1984) is still a very good album.
Roy Orbison’s Mystery Girl (1989) was an outstanding album, and (along with “Traveling Wilburys Vol. 1”) should have fueled a career renaissance for him. But, alas, he died two months before its release.
I’ll also concur with several others which have already been mentioned:
Yes: 90125
Genesis: Duke, Abacab
Moody Blues: Long Distance Voyager, The Present, The Other Side of Life
George Harrison: Cloud 9
Black Sabbath’s Heaven and Hell barely scrapes in - it was released in 1980 - but with Ronnie James Dio replacing Ozzy, it was their strongest work in years and still one of their best albums.
It’s Hard by the Who (released 1982) is a forgotten classic.
Blue Öyster Cult had 1981’s Fire of Unknown Origin, which spawned one of their biggest radio hits, “Burnin’ For You”.
Tom Petty had his nadir in the 1980s, with the exception of 1989’s incredibly well-received Full Moon Fever. (Well, there was also his work with the Traveling Wilburys supergroup, but its success owes just as much to the other four band members.)
I came on here to suggest Come Dancing too.
It was hugely successful and contains some of his best-known songs, but I think that artistically Scary Monsters (and Super Creeps) was his strongest 1980s album by far. Actually, the 80s weren’t a very good decade for him creatively although he was doing great commercially. It took 15 years and the release of the more ambitious Outside (1995) to witness a return to form.
Nothing to add but enjoying the thread.
I have one more to add. Neil Young’s eighties albums were a string of erratic and strange affairs, culminating in being sued by his own label (David) Geffen for being uncommercial, but he returned to form with one of his classic albums “ Freedom“ in 1989, which also included the biggest hit of his later career, “Rockin’ In The Free World“.
A Kind of Magic might not be Queen’s best album (I’d say it is, taken as a whole album, but that’s probably just me), but it’s certainly up there with the earlier ones.
The 60s moptops The Lovely Lads recorded their best music in the 80s, albeit under a different name. 
Sorry, I didn’t realize their lineup had changed so much. Doesn’t count.
Grace is one of the most underrated and underplayed albums of all time.
But by the same token Gabriel released Peter Gabriel, number 3, in 1980 and So in 1986. *So * was rated the number 14 album of the 80s by Rolling Stone.
1981 = Moving Pictures, the best of the bunch.
This is purely subjective, but I always think of Heart, Cheap Trick, and the Moodies as being bands that produced good albums in the 80s that were “80s-type music.” They transitioned successfully, as opposed to some other bands that just kept doing what they had already been doing.
I was a big Yes fan in the 70s, but could never generate any affection for their 80s efforts. 90125 was just not my cup of tea.
Richard and Linda Thompson’s final album together, Shoot Out The Lights.