Both of his parents were born in Virginia and Carleton's father, John T. Little Senior, supported the family as a clothing importer.

Carleton briefly tried the legal profession but became driven by a bigger calling.

During this time, Charles Frohman suggested he adopt the stage name of Lloyd B. Carleton.

After studying film-making techniques at the American Biograph studios, acting in a 1910 film, he got a job directing movies at Thanhouser.

He would continue to direct movies at Lubin, Selig, Universal, and Clermont Photoplays.