David was born in Blunderstone, Suffolk, England, six months after the death of his father. David spends his early years in relative happiness with his loving, childish mother and their kindly housekeeper, Clara Peggotty. They call him Davy. When he is seven years old his mother marries Edward Murdstone. To get him out of the way, David is sent to lodge with Peggotty's family in Yarmouth. Her brother, fisherman Mr Peggotty, lives in a beached barge, with his adopted niece and nephew Emily and Ham, and an elderly widow, Mrs Gummidge. "Little Em'ly" is somewhat spoiled by her fond foster father, and David is in love with her. They call him Master Copperfield.

On his return, David is given good reason to dislike his stepfather, Murdstone, who believes exclusively in firmness. David has similar feelings for Murdstone's sister Jane, who moves into the house soon afterwards. Between them they tyrannise his poor mother, making her and David's lives miserable, and when, in consequence, David falls behind in his studies, Murdstone attempts to thrash him – partly to further pain his mother. David bites him and soon afterwards is sent away to Salem House, a boarding school, under a ruthless headmaster named Mr Creakle. There he befriends an older boy, James Steerforth, and Tommy Traddles. He develops an impassioned admiration for Steerforth, perceiving him as someone noble, who could do great things if he would, and one who pays attention to him.