Born in South Haven, Michigan, as the third son of farmers Liberty Hyde Bailey Sr. and Sarah Harrison Bailey, Bailey entered the Michigan Agricultural College (MAC, now Michigan State University) in 1878 and graduated in 1882.
Lahir di South Haven, Michigan, sebagai putra ketiga dari petani Liberty Hyde Bailey Sr. dan Sarah Harrison Bailey, Bailey masuk Akademi Pertanian Michigan (Michigan Agricultural College (MAC), sekarang Universitas Negeri Michigan) pada 1878 dan lulus pada 1882.