At the age of 17 he began working at his father's office for the purpose of studying the law, but soon devoted himself to writing humorous articles for the public journals, and produced a small volume entitled Rough Sketches of Bath.

He studied at St Mary Hall, Oxford with the intention of joining the church, but it is reported that "he did not apply himself to the pursuit of academical honours" and left university after three years.

The play Perfection, written during a journey by stagecoach from Bath to London and now regarded as his best dramatic work, was declined by many theatrical managers, but ultimately Madame Vestris produced it and appeared in it.

A replacement agent ultimately made the property pay, but these financial difficulties, combined with poor physical health, had a detrimental effect on Bayly's creativity.

During a trip to France to convalesce, he was able to recover sufficiently to write the poem The Bridesmaid, which drew a flattering letter from Sir Robert Peel.

In the same year he wrote Kindness in Women, a three-volume collection consisting of a double novel Kate Leslie and an independent tale David Dumps, Or, The Budget of Blunders.