Loretta Mary Aiken was born in Brevard, North Carolina, on March 19, 1894. She was one of 16 children born to James Aiken and Mary Smith, who had married in 1891. Her father owned and operated several successful businesses, while her mother kept house and took in boarders. At the age of 14, at the encouragement of her grandmother, Mabley ran away to Cleveland, Ohio, joining a traveling vaudeville-style minstrel show starring Butterbeans and Susie, where she sang and entertained. In 1909, when Mabley was 15, her father was killed when a fire engine exploded while he was volunteering as a fire fighter. Her mother took over the family's primary business, a general store. Mabley's mother was killed a few years later, run over by a truck while returning home from church on Christmas Day.