Born off the coast of Natal, in the state of Rio Grande do Norte in northeastern Brazil, Carley Gracie grew up as the 11th child of Carlos Gracie Sr., the founder of Gracie jiu-jitsu. Raised in the family's country home in Teresópolis, nestled in the mountains near Rio de Janeiro, Carley came to the art later than most men of his lineage — dedicating his early years to horses rather than the martial art that bore his family's name.
It was only after relocating to Rio de Janeiro that Carley committed fully to jiu-jitsu, beginning his training under his father Carlos Gracie Sr. before continuing his development under his older brother Carlson Gracie, one of the foremost fighters of the Gracie generation. Under their combined guidance, Carley evolved into a determined and capable competitor, participating in Gracie challenges and grappling tournaments where he successfully defended the family's honor on multiple occasions.