In 1979, under the management of Leatrice Spevack, Carrey started doing stand-up comedy at Yuk Yuk's in Toronto, where he rose to become a headliner in February 1981, shortly after his 19th birthday. One reviewer in the Toronto Star raved that Carrey was "a genuine star coming to life." In the early 1980s, Carrey moved to Los Angeles and started working at The Comedy Store, where he was noticed by comedian Rodney Dangerfield. Dangerfield liked Carrey's performance so much that he signed Carrey to open Dangerfield's tour performances.

Carrey then turned his attention to the film and television industries, auditioning to be a cast member for 1980–1981 season of NBC's Saturday Night Live. Carrey was not selected for the position (although he did host the show in May 1996). Joel Schumacher had him audition for a role in D.C. Cab, though in the end, nothing ever came of it. His first lead role on television was Skip Tarkenton, a young animation producer on NBC's short-lived The Duck Factory, airing from April 12, 1984, to July 11, 1984, and offering a behind-the-scenes look at the crew that produced a children's cartoon.

Carrey continued working in smaller film and television roles, which led to a friendship with fellow comedian Damon Wayans, who co-starred with Carrey as a fellow extraterrestrial in 1989's Earth Girls Are Easy. When Wayans' brother Keenen began developing a sketch comedy show for Fox called In Living Color, Carrey was hired as a cast member, whose unusual characters included masochistic safety inspector Fire Marshall Bill (whose dangerous "safety tips" were the target of censors and watchdog groups who saw the character as a dangerous example for naive younger viewers), and masculine female bodybuilder Vera de Milo. His on-screen antics caught the eye of Hollywood.