The issue that led to the KKK coming back into power was immigration. The KKK got back into national prominence because people were upset about how much immigration there was.
We think of the KKK as an anti-black organization, but in these days, it was mainly anti-immigrant, anti-Catholic and anti-Jew.
The US had had a pretty liberal policy on immigration in those days, letting just about anyone in as long as they were not Chinese. By the 1920s, this meant that there were a lot of immigrants in American cities. Many of them were Italian Catholics and Russian and Polish Jews.
They seemed too foreign and their coming happened around the same time as things like the flappers. Traditionalists in rural areas put the two together and supported the KKK in its attempt to bring back a more traditional, rural, protestant Americanism.
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