Canabarro was born to José Martins Coelho (from Porto Alegre) and Mariana de Jesus Ignacia (from Santa Catarina).

The surname "Canabarro" came from his grandfather, Manuel Teodósio Ferreira, who received the nickname from Luís Teles da Silva Caminha e Meneses, 5th Marquis of Alegrete, and added it to his own name.

Years later, he was a lieutenant in the forces of Bento Gonçalves in the Cisplatine War in 1825–1828, which culminated in a peace treaty in August 1828 that granted independence to Uruguay.

When the war ended, he continued his military career, this time associated with his uncle Antonio Ferreira Canabarro in the border region with Uruguay near Santana do Livramento.

While negotiating peace with the Empire of Brazil, Canabarro offered his services to Juan Manuel de Rosas, ruler of the Argentine Confederation, who wanted to expand the borders of his country.