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Peel was born in Bury, Lancashire, England, to the industrialist and Member of Parliament Sir Robert Peel, 1st Baronet.
His father was one of the richest textile manufacturers of the early Industrial Revolution.
Peel was educated first at Hipperholme Grammar School, then at Harrow School and finally Christ Church, Oxford, where he took a double first in classics and mathematics.
He is also believed to have attended Bury Grammar School.
While living in Tamworth, he is credited with the development of the Tamworth Pig by breeding Irish stock with some local Tamworth pigs.

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