Born the son of Frederick Stanley, 16th Earl of Derby, Stanley entered the navy in 1880, was appointed a Lieutenant in 1889, promoted to Commander in January 1901, and Captain 1905.
He became naval attaché to Russia in 1905, commanding officer of the cruiser HMS Essex in 1909 and Captain of the Royal Naval College, Dartmouth in 1912.
He served in World War I as commanding officer of the battleship HMS Erin from 1914 to 1917. He became naval attaché in the British delegation to Washington D. C. in 1918, Second-in-Command of the 1st Battle Squadron in 1919 and Vice Admiral Commanding the Reserve Fleet in 1924 before retiring in 1926.
He married in 1896 Canadian Annie Bickerton Pooley, daughter of Hon. C. E. Pooley, K.C., of British Columbia.