Just listening to my iPod, and I have 2 songs with the album title in the lyrics:
Song/artist/album
1.“Walk On”/U2/All That You Can’t leave Behind
2.“We Build This City”(On Rock ‘n’ Roll)"/Starship/Knee Deep in the Hoopla
I’m sure you got more!
Pink Floyd’s A Momentary Lapse of Reason came from the song “One Slip.”
And their ***The Division Bell ***came from the song “High Hopes.”
Creedence Clearwater Revival’s ***Willie and the Poor Boys ***came from the song “Down on the Corner.”
Jimmy Olsen’s Blues by the Spin Doctors gave them the album title Pocket Full of Kryptonite.
Elvis Costello: Blood and Chocolate, from “Uncomplicated”–in fact, the first words of the album.
Genesis: Selling England by the Pound, from “Dancing Out with the Moonlit Knight.”
Paul McCartney: Flowers in the Dirt, from “That Day Is Done.”
Didn’t Deep Purple have a habit on naming albums off a phrase on the last album?
The lyrics “Sabbath, bloody Sabbath” can be heard in the song “Sabbath Bloody Sabbath” from the album Sabbath Bloody Sabbath. The band, of course, is Black Sabbath, which also has an album called Black Sabbath on which is recorded a song called “Black Sabbath,” but I don’t think the words “black sabbath” can be heard together in it, so that doesn’t really help with your survey. Sorry. 
Elvis Costello My Aim Is True comes from “Allison”
Album titles in bold.
Simon & Garfunkel, from ‘Old Friends’: “Old friends, sat on their park bench like bookends”
Kylie Minogue, from ‘Slow’: “Read my body language, take it down, down”
Kylie Minogue, from ‘Dreams’: “These are the dreams of an impossible princess”
Sugababes, from ‘Ugly’: “I didn’t know my body would change, I grew taller than them in more ways”
Britney Spears, from ‘Me Against The Music’: “It’s like a competition, me against the beat, I wanna get in the zone”
Eurythmics, from ‘Conditioned Soul’: “Just be yourself tonight, there’s nothing wrong with the way you feel”
Cher, from ‘A Different Kind Of Love Song’: “I am part of you, we have living proof”
Girls Aloud, from ‘Close To Love’: “Man get up, we’re gonna start this fire, tangled up, because I know I should”
Girls Aloud, from ‘Love Machine’: “What will the neighbours say this time?”
Sade, from ‘Smooth Operator’: “Diamond life, lover boy, he move in space with minimum waste and maximum joy”
Eminem, from ‘Cleanin’ Out My Closet’: “It’s my life, I’d like to welcome y’all to the Eminem show”
Rogue Traders, from ‘Voodoo Child’: “So here it comes, the sound of drums, here come the drums, here come the drums”
Alanis Morissette, from ‘You Learn’: “Swallow it down, what a jagged little pill”
Culture Club, from ‘Miss Me Blind’: “I’m never really sure if you’re just kissing to be clever” (reference to their previous album)
Nirvana, from ‘Smells Like Teen Spirit’: “I found it hard, it was hard to find, oh well, whatever, nevermind”
Take That, from ‘The Flood’: “There’s progress now where there once was none”
The Corrs, from ‘Queen Of Hollywood’: “And her friends they talk on corners, they could never comprehend”
Darren Hayes, from ‘I Like The Way’: “I like the way you move in the dark, I love the tension, the tension and the spark”
The Clash: Sandinista!, from “Washington Bullets.”
Procol Harum: The Prodigal Stranger, from “Man with a Mission.”
Stranglers: Black and White, from “Curfew.”
Near miss: “Doctor Wu” on Steely Dan’s Katy Lied contains the line “Katy tried.”
Old 97’s have done this on a number of their albums. For example:
Hitchhike To Rhome is from the song “Stoned”
Too Far To Care is from the song “Streets of Where I’m From”
Hit By A Train is from the song “Timebomb” (Although HBAT is their “Best of” album but that song is on it so I’m counting it.)
Wilco’s A Ghost is Born is from the song “Theologians”
Captain Beefheart’s Trout Mask Replica comes from a lyric in the song “Old Fart at Play.”
Frank Zappa’s Hot Rats comes from a lyric in “Willie the Pimp”
Moody Blues On the Threshold of a Dream comes from the recitative, “The Dream.”
There is no song named “Tommy” in the Who’s Tommy, though the word is used many times.
Traffic’s Dear Mr. Fantasy comes from a lyric, not a song title (the title of the song is just “Mr. Fantasy.”)
This applies a lot of cast recordings. There are no songs called “Jesus Christ Superstar,” “Evita,” “CATS,” or “Song & Dance,” but the titles are in the lyrics.
By the same band, their album Wilco has a song titled “Wilco” that repeats the name frequently in the chorus.
I just realized that a LOT of live albums follow this naming convention.
One that comes to mind is the Talking Heads’ live album/movie Stop Making Sense, which takes its title from a line in the song “Girlfriend Is Better.”
Or U2’s live album Under a Blood Red Sky, which takes its title from a line in “New Year’s Day.”
It’s the other way around: the album is Mr. Fantasy and the song title is “Dear Mr. Fantasy.”
The Ben Folds Five had an album called Whatever and Ever, Amen, which is a lyric from the song “The Battle of Who Could Care Less.”
Alanis Morrisette’s album Jagged Little Pill comes from a lyric in the song “You Learn” off that album. In fact, it was even a Final Jeopardy answer, which asked for the album title that followed the lyric, “Swallow it down…”
Paul Simon’s greatest hits album Negotiations and Love Songs takes its title from a line in “Train in the Distance.”
I think of all the groups I’d think of if you told me “they parodied a Randy Travis title,” Ben Folds Five would come in just ahead of The Time and the Hollies at the bottom of the list.
Steeleye Span’s LP Parcel of Rogues takes its title from a lyric in the song “Rogues in a Nation”.
Dave Matthews Band had the album title Under the Table and Dreaming from a line in the song Ants Marching.