Spain found themselves in front thanks to Olga Carmona's goal just before the half hour mark, pouncing on England's defenders being out of position.
Lucy Bronze, who had had a fantastic start to the World Cup final, was going through the middle of the pitch looking for a Lioness to pass to.
However, the defender's advance was snuffed out by onrushing Spain players, giving the ball away on the half way line, and the Spaniards went on to capitalise on Bronze being out of position, despite Alessia Russo desperately trying to get back on England's right-hand side.
After Real Madrid star Carmona slotted the ball into the bottom corner, Earps immediately shouted at her defenders, clearly unhappy with the cover they had offered.
"Absolutely brilliant goal. Absolutely great switch ball, Bronze was out of position," talkSPORT's co-commentator and former England striker Lianne Sanderson said.
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"She was asking for options, it allowed them to find the spare player. Russo was trying to cover. Absolutely fantastic strike. Earps was telling them 'we need to get tighter'."
Following the half time whistle, the England goalkeeper was still visibly frustrated.
"Earps walked off the pitch with a face like thunder," England correspondent Carruthers said.
Meanwhile, 23-year-old Carmona is the youngest Women's World Cup final goalscrorer since Alex Morgan in 2011.
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Listen to live commentary of the 2023 Women's World Cup final on talkSPORT, as England go for glory against Spain. Build-up from Australia begins at 10am, with the big kick-off at 11am.