I am using Beetle Lynx on an RG353M handheld (Batocera). The background that is supposed to be black is grey. I don’t know why it is grey but it makes it look washed out. Is there a way to get rid of that grey background and change to black?
Batocera uses a lot of custom scripting to make all it’s magic happen. While you may find your answer here you might find it faster asking the question on the Batocera Discord.
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It is not Batocera that is the problem it is the emulator because all other emulators are ok.
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That may be an invalid assumption. The Batocera team works a lot of background magic that the Retroarch community would be unaware of.
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It could be as simple as what shader they are using as a default for the system. Have you tried using a different shader set?
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It may have something to do with the drivers available for your system. Have you tried changing the default driver for the Atari Lynx? (You can set each system.)
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Have you tried changing the core to the Handy core.
Each of these is a possible solution that has more to do with Batocera that Retroarch.
Like I said… you can probably get your answer here… and it may be forthcoming… but I would strongly suggest that you seek the answers from the team that built your system image.
They are a remarkably friendly team. 
(I work closely with TVslan, Lbrpdx, and others.)
They have a support channel, that’s what it’s for. 