Farrell began acting on stage as a child and continued with various theatre companies and on Broadway before signing with Warner Bros. A signature 1930s Warner Bros. star, Farrell appeared in films such as Little Caesar (1931), I Am a Fugitive from a Chain Gang (1932), Mystery of the Wax Museum (1933) and Lady for a Day (1933). Starting with Smart Blonde (1937), Farrell played Torchy Blane, a daring female reporter, in a series of popular films which later was credited by comic book writer Jerry Siegel as the inspiration for the DC Comics reporter Lois Lane. After leaving Warner Bros. in 1939, Farrell remained active in film, television and theatre throughout the rest of her career.
Farrell was born in Enid, Oklahoma. Her father, Charles Farrell, was a horse trader of Irish and Cherokee descent. Farrell's mother, Wilhelmina "Minnie" of German descent, was the driving force behind her daughter's theatre career. Farrell had two brothers, Dick and Gene. After her family moved to Wichita, Kansas, Farrell began acting on stage with a theatrical company at age seven, playing the role of Little Eva in the play Uncle Tom's Cabin. Farrell's mother had never achieved her desire of being an actress, encouraged and supported her daughter's acting interests. When her family moved to San Diego, California, a teenage Farrell joined the Virginia Brissac Stock Company. Farrell made the third honor roll in Motion Picture Magazine's "Fame and Fortune Contest". Her picture and biography were featured in the magazine's April 1919 issue, which also stated that Farrell had some experience in the chorus, vaudeville, and camp entertainments. Farrell received a formal education at the Mount Carmel Catholic Academy.
In 1928, Farrell was cast as the lead actress in the play The Spider and made her film debut in a minor role in Lucky Boy. Farrell moved to New York City in 1929, where she replaced Erin O'Brien-Moore as Marion Hardy in Aurania Rouverol's play Skidding. The play later served as the basis for the Andy Hardy film series. By April 1929, the Brooklyn Daily Eagle reported that she had played the role 355 times. Farrell appeared in several other plays, including Divided Honors, Recapture, and Love, Honor and Betray with George Brent, Alice Brady, and Clark Gable.

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