Charles Booth was born in Liverpool. His father, was a corn merchant, Charles attended the Royal Institution School in Liverpool until becoming apprenticed to a shipping company at the age of sixteen. In 1862, Charles joined his eldest brother Alfred in the commission business dealing principally in skins and leather. Using money inherited from their father, the brothers set up offices in both Liverpool and New York.
Booth campaigned unsuccessfully for the Liberal parliamentary candidate in the election of 1865. Canvassing in the slums of Toxteth was a shocking exposition of squalor and poverty, which must have contributed to his gradual abandonment of religious faith. But Booth developed a profound sense of obligation and responsibility towards the poor and to the improvement of social conditions. His disillusionment with party politics following further victories for the Tory "beerocracy" in municipal elections in 1866 was such that he rejected this as a means by which he could influence society, but suggested to him the benefits of educating the electorate. To this end he joined Joseph Chamberlain's Birmingham Education League.
In 1871 Booth married Mary Macaulay. She became to Booth an invaluable adviser in the business, an active contributor to the work of his monumental survey into London life and labour, as well as running a substantial household and raising six children. The Booths' circle in London included Mary's cousin Beatrice Potter (later Beatrice Webb), Octavia Hill, and Canon Samuel Barnett.
In the autumn of 1885 Henry Hyndman published the results of an inquiry into poverty conducted by the Social Democratic Federation, which claimed to show that up to twenty-five percent of the population of London lived in extreme poverty. In early 1886 Booth visited Hyndman, who records in his autobiography that Booth told him that "in his opinion we had grossly overstated the case" and that he would himself be undertaking an inquiry into the condition of workers in London. The first meeting to organise this inquiry was held on 17 April 1886: the work would last until 1903, resulting in the publication of three editions of the survey, the final edition of Life and Labour of the People in London (1902-1903) running to 17 volumes. The work would absorb both Charles and Mary Booth and employ a team of social investigators including, at various times, Beatrice Webb and George Duckworth.
The inquiry was organised into three broad sections: poverty, industry and religious influences. The poverty series gathered information from the School Board Visitors about the levels of poverty and types of occupation among the families for which they were responsible. Special studies into subjects such as the trades associated with poverty, housing, population movements, the Jewish community and education were also included. The industry series, investigated every trade in London, from cricketers to wigmakers, to establish wage levels and conditions of employment. The series also covered the "unoccupied classes" and inmates of institutions. The religious influences series sought to describe these other forces acting on the lives of the people. As well as religion and philanthropy, it also covered local government and policing. Alongside the Survey Booth created maps coloured street by street to indicate the levels of poverty and wealth. These identified 7 classes of social class in London.
As well as creating the Survey's Booth served on the Royal Commission of the Aged Poor where he advocated for the introduction of Old Age pensions.