Duan Ye was described as a kind but weak ruler who was unable to keep his subjects in check, and who overly trusted witchcraft and magic.
The first historical reference to Duan Ye was in 388, when he was one of the officials under the ruler of Later Liang, Lü Guang, then carrying the title the Duke of Jiuquan.
Lü Guang, citing the examples of the legalists Wu Qi and Shang Yang, defended his harsh applications.
Instead of backing down, Duan Ye pointed out that Wu and Shang both died as a result of their use of laws, and that what Lü Guang was doing was not in accordance of the wishes of the people.
In 396, when Lü Guang claimed the greater title of Prince of Sanhe, he made Duan Ye one of his ministers.
Duan Ye initially refused, but after 20 days of siege, no aid came from the Later Liang capital Guzang (姑臧, in modern Wuwei, Gansu).
Soon thereafter, with the sorcerer Guo Nen (郭黁) having rebelled at Guzang, Lü Zuan withdrew from Jiankang, allowing Duan Ye's nascent state to stand.
However, Southern Liang's general Tufa Rutan then made a major attack on Guzang, forcing Lü Zuan to withdraw.
Duan Ye initially agreed, but was then warned by his general Suo Si (索嗣) that Li Gao had greater ambitions and should not be permitted to stay at Dunhuang.
He set a date with Juqu Nancheng to offer sacrifices to the god of Lanmen Mountain (蘭門山, near Zhangye) on a vacation day, but submitting a false report through the official Xu Xian (許咸) that Juqu Nancheng was set to rebel and would start the rebellion on a day that he requested permission to sacrifice to the god of Lanmen Mountain.