It is on the long stretch of road that runs North from Lincoln, and was the Roman Ermine Street.
The crossroads here is now more often known as Caenby Corner, with roads leading Westwards to Gainsborough and Eastwards to Market Rasen.
The name is by no means as coarse as it now sounds. "Spital" refers to a mediaeval hospital, and "street" refers to the road, of which there were very few in the Middle Ages. Thus a hospital built beside a Roman road.