The description was published in Fragmenta phytographiae Australiae from a specimen collected by Frederick Manson Bailey growing on the trunk of Casuarina equisetifolia near Rockingham Bay.

[5][6] The specific epithet (baileyi) honours Manson Bailey who collected the type specimen.

[6] The fruit fly orchid grows on trees, rocks and cliff faces in mangroves, rainforest and open forest.

It is found in New Guinea, some Torres Strait Islands and the Cape York Peninsula as far south as Townsville.

[2][3][4] The flowers of B. baileyi are pollinated by male fruit flies of the genus Bactrocera which are attracted to them by their "fruity" fragrance.