Self-organized electronically ordered phases are a recurring feature in correlated materials, resulting in, for example, fluctuating charge stripes whose role in high-TC superconductivity is under debate. However, the relevant cause-effect relations between real-space charge correlations and low-energy excitations remain hidden in time-averaged studies. Here we reveal ultrafast charge localization and lattice vibrational coupling as dynamic precursors of stripe formation in the model compound La(1.75)Sr(0.25)NiO4, using ultrafast and equilibrium mid-infrared spectroscopy. The opening of a pseudogap at a crossover temperature T* far above long-range stripe formation establishes the onset of electronic localization, which is accompanied by an enhanced Fano asymmetry of Ni-O stretch vibrations. Ultrafast excitation triggers a sub-picosecond dynamics exposing the synchronous modulation of electron-phonon coupling and charge localization. These results illuminate the role of localization in forming the pseudogap in nickelates, opening a path to understanding this mysterious phase in a broad class of complex oxides.