Verna Felton was born in Salinas, California, on July 20, 1890. Her father, Horace W. Felton, a doctor, died shortly before her ninth birthday. When going over his accounts after his death, Felton's mother Clara Felton (née Lawrence) discovered that although her husband had a large medical practice in San Jose, there were no records of his patients' payments for treatment and no cash in the office. Shortly before her father's death, Felton had performed in a local benefit for victims of the Galveston Flood. Her singing and dancing attracted the attention of a manager of a road show company that was playing in San Jose at the time. The manager spoke to Felton's mother, offering to give Felton a job with his company. Since the family was experiencing difficult financial times with the loss of Felton's father, her mother contacted the road show manager. Felton quickly joined the cast of the show, growing up in the theater.