Grace Stansfield was born over a fish and chip shop owned by her grandmother, Sarah Bamford, in Molesworth Street, Rochdale, Lancashire. She made her first stage appearance as a child in 1905, joining children's repertory theatre groups such as 'Haley's Garden of Girls' and the 'Nine Dainty Dots'. Her two sisters, Edith and Betty and brother, Tommy, all went on to appear on stage, but Gracie was the most successful. Her professional debut in variety took place at the Rochdale Hippodrome theatre in 1910 and she soon gave up her job in the local cotton mill, where she was a half-timer, spending half a week in the mill and the other half at school.