Busey was born in Goose Creek, Texas, the son of Sadie Virginia (née Arnett), a homemaker, and Delmer Lloyd Busey, a construction design manager. He graduated from Nathan Hale High School in Tulsa, Oklahoma in 1962. While attending Pittsburg State University in Pittsburg, Kansas on a football scholarship, he became interested in acting. He then transferred to Oklahoma State University in Stillwater, Oklahoma where he quit school just one class short of graduation.