Layton was born on in Corpus Christi, Texas. During his childhood, he lived in Mathis, Texas, a small community where his father owned a car dealership. After hearing Chubby Checker’s version of “The Twist”, Layton became fascinated with playing the drums. He moved back to Corpus Christi and acquired his first drum set at the age of 13. Layton graduated from W. B. Ray High School, where he was part of the school band. After attending Del Mar College in Corpus Christi, Layton moved to Austin on December 18, 1975, joining the band Greezy Wheels.

On September 10, 1978, Layton joined Vaughan in Double Trouble, taking the name from a song by Otis Rush. After Tommy Shannon replaced Newhouse in 1981, Double Trouble performed at the Montreux Jazz Festival in July 1982, where its performance caught the attention of Jackson Browne. The band’s debut album, Texas Flood (1983), was recorded in Browne’s studio and became a commercial success. The album was produced by John H. Hammond and sold more than half a million copies by the end of the year.

Layton would continue to record and perform with Vaughan and Double Trouble until Vaughan’s death on August 27, 1990. He said of Vaughan’s death: “Stevie meant everything to me musically. His death was the worst thing that ever happened to me.” Following his death, Layton and Shannon formed the Arc Angels, with guitarists Doyle Bramhall II and Charlie Sexton. In 1994, they formed Storyville with David Lee Holt, David Grissom, and singer Malford Milligan. Layton and Shannon played on the 1994 album Something Inside of Me by Little Jimmy King. Layton appeared with Shannon in a tribute to Vaughan broadcast on Austin City Limits in 1995. Layton and Shannon also released their first solo album, Been a Long Time (2001), and featured many special guests such as Dr. John and Willie Nelson. In 2003, Layton formed Grady with leader Gordie (Grady) Johnson, and has worked with many other artists including Jonny Lang, Kenny Wayne Shepherd, Eric Johnson, and Susan Tedeschi.