Dee was born in Los Angeles, where her Army officer father was stationed, and grew up in Chicago after her father was transferred there, marking a significant change in her early life. In 1929, her father was re-assigned to Los Angeles, and, as a lark, the 19-year-old Dee began working in motion pictures as an extra, initiating her journey in the entertainment industry. Her debut was in Words and Music (1929) with Lois Moran, a notable start to her career.
After her breakthrough role in Playboy of Paris (1930) opposite Maurice Chevalier, she met Joel McCrea on the set of the 1933 film The Silver Cord (1933). Following a whirlwind courtship, the two were married later that year in Rye, New York, embarking on a 57-year marriage that would eventually come to an end in 1990, when her husband passed away.
In the 1970s, she and McCrea were rumored to be worth between fifty and one hundred million dollars, a testament to their successful careers and marriage. Dee hasn't acted since the mid-1950s, and said she didn't miss it, suggesting a contented retirement. The nonagenarian actress was a huge hit at the 1998 Memphis Film Festival in Tunica, Mississippi, a testament to her enduring popularity. She died in 2004, leaving behind a legacy in the world of entertainment.