He attended Eton College between 1851 and 1857, gaining the Tomline Prize for mathematics in 1857.

Stanley (then known as the Honourable Edward Lyulph Stanley) contested Oldham, in the Liberal interest, at elections in 1872, 1874, 1880 and 1885.

He only won the 1880 contest and served in the House of Commons during the 1880–1885 Parliament.

He inherited the title of Baron Stanley of Alderley in 1904, following the death of his brother.

Stanley was a member of the London School Board from 1876 to 1885 and also from 1888 to 1896.