She was a member of the Princeton Triangle Club and the Cap and Gown Club. Her autobiography, On Your Own, was published in 1985. Her 1987 senior thesis was titled "The Initiation: From Innocence to Experience: The Pre-Adolescent/Adolescent Journey in the Films of Louis Malle, Pretty Baby and Lacombe Lucien".

She moved to a dorm at Princeton University to pursue her bachelor's degree in French literature, where she graduated in 1987. At Princeton, Shields spoke openly about her sexuality and virginity.

Shields attended the New Lincoln School until eighth grade. She graduated from the Dwight-Englewood School in Englewood, New Jersey, in 1983.

Shields has stated that her very first encounter with the paparazzi was in the Grand Ballroom of the Waldorf Astoria New York at the age of 12, stating that she "stood like a statue wondering why they were all hired to photograph her" and that she "debuted at the Waldorf".

Shields was raised in the Roman Catholic faith. For her confirmation at age 10, she took the name "Camille". While attending high school, she resided in Haworth, New Jersey, across the George Washington Bridge from Manhattan.

She has two stepbrothers and three half-sisters. When Shields was only five days old, her mother openly stated she wanted her to be active in show business, saying, "She's the most beautiful child and I'm going to help her with her career." Growing up, Shields took piano, ballet, and horse riding lessons.

When Teri announced that she was pregnant, Frank's family paid her a sum to terminate the pregnancy. Teri took the money, but violated the agreement and gave birth to Shields. Frank married Teri, but they were divorced when Shields was five months old.

Her paternal grandmother was Italian noblewoman Marina Torlonia di Civitella-Cesi, who was the daughter of an Italian prince and an American socialite.