Born at Portarlington, William Steele was educated at the University of Melbourne, being awarded a Bachelor of Arts in 1890 and a Master of Arts in 1892. Between 1894 and 1897 Steele lectured in technical electricity at the Ballarat School of Mines (SMB).
William Steele was ordained a Presbyterian minister in 1901, and was Moderator of the Presbyterian Church, Western Australia in 1916, and the Presbyterian Church of Victoria in 1935.