We develop a theory of loops with involution. On this basis we define a Cayley-Dickson doubling on loops, and use it to investigate the lattice of varieties of loops with involution, focusing on properties that remain valid in the Cayley-Dickson double. Specializing to central-by-abelian loops with elementary abelian
2-group quotients, we find conditions under which one can characterize the automorphism groups of iterated Cayley-Dickson doubles. A key result is a corrected proof that for
n>3, the automorphism group of the Cayley-Dickson loop
Qn is
GL3(F2)×{±1}n−3.