Born in Kettwig (today part of Essen) in the Rhine Province, the son of a merchant, Gebühr attended the gymnasium secondary school in Cologne and completed a commercial training.

He found the role of his lifetime in 1919, acting as King Frederick II in the historical drama The Dancer Barberina directed by Carl Boese, modeled on the life of ballerina Barbara Campanini (1721–1799).

The first part of the UFA Fridericus Rex tetralogy starring Otto Gebühr playing the title role was released in 1922, followed by several further so-called "Fridericus-Rex-movies".

The series was heavily criticized by contemporaries for supporting a widespread negative stance towards the Weimar Republic democracy and the yearning for a leader in waiting.

Gebühr continued his performances in the Nazi period from 1933 onwards, last performing in The Great King (German: Der Große König), a 1942 German wartime propaganda film directed by Veit Harlan[1] referring to the historic Miracle of the House of Brandenburg, which received the rare "Film of the Nation" distinction.