Moira Kelly was born in Queens, New York on March 6, 1968. She is the daughter of Peter (a trained concert violinist) and Anne (a nurse) who are Irish immigrants. Kelly is the third of six children and was raised in Ronkonkoma, New York. She was brought up as a Catholic. Kelly attended Connetquot Senior High School in Bohemia, Long Island, graduating in the class of 1986. Later, she attended Marymount Manhattan College.[citation needed]
In her youth, Kelly was cast in a small role in her high school's 1984 production of Annie. Due to illness, the girl playing Miss Hannigan was replaced, causing a series of cast changes leading to her choice of career. A devout Catholic, Kelly had to decide between acting and her childhood ambition of becoming a nun.
Kelly made her professional acting debut in the fact-based made-for-TV movie Love, Lies and Murder, playing teenager Cinnamon Brown, who was coerced by her father into killing his wife and her stepmother, Linda Brown. She was originally going to have a starring role as Polly Pry in Trey Parker and Matt Stone's Cannibal! The Musical, but Kelly was convinced not to do so by her agent out of concerns it could potentially ruin her career, and was ultimately replaced with Toddy Walters, though she was still credited in the end credits under her initials "M.K." as "the Dropout". She went on to have small roles in the films The Boy Who Cried Bitch, Hi-Life, and Billy Bathgate before being cast as Donna Hayward in Twin Peaks: Fire Walk with Me. For that film, she went home and got permission from her priest because of an explicit sex scene. In the same year, she starred opposite D. B. Sweeney in the romantic comedy The Cutting Edge and played two roles opposite Robert Downey Jr. in Chaplin. According to a TV Guide interview, before taking on her role in Daybreak, Kelly once again asked her priest for advice: "Being a Catholic, I wondered if it would be against my religion to play a girl who has premarital sex." The priest told her "it was okay, as long as my artistic intentions were true and I wasn't doing it for the notoriety or the money."

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