Born as a member of the Přemyslid dynasty, a younger son of Duke Sobeslaus I and his wife Adelaide (daughter of Prince Álmos of Hungary).
After an intervention by Bishop Daniel I of Prague, all parties agreed that Vladislaus II would be Duke of Bohemia (in 1158 he became the second King of Bohemia) and Udalrich would receive Hradec Castle (present-day city of Hradec Králové) along with the surrounding region.
King Vladislaus II abdicated in 1172 in favour of his son Frederick; nevertheless this act – until then unusual – met with strong resistance of Bohemian nobles and even the Emperor reject to acknowledge Frederick as rightful ruler.
However, Udalrich declined the honour (because he wanted to keep seniority principle established in Přemyslid dynasty already in the mid of 11th century) and renounced the rule over Bohemia in favour to his elder brother Sobeslaus II.
Grateful brother rewarded him by reign in the most important part of Moravia, i.e. the Duchy of Olomouc.