Luciano Baptista Cordeiro de Sousa was born in Mirandela on 21 July 1844 to Luciano José Cordeiro de Sousa and Leopoldina Cândido Álvares Ferreira. His mother, born in Montevideo, was the daughter of Chief Surgeon Francisco Bernardo de Santa Ana Álvares Ferreira. The occupation of Luciano's father is unknown, though some sources suggest he may have been a civil servant. This hypothesis could explain the family's frequent relocations, moving from Mirandela to Lisbon, then to Funchal, and later back to Lisbon. However, according to Luciano Cordeiro's son, his grandfather was forced to relocate to Madeira for political reasons during a turbulent period in national life in the late 19th century. Between 1838 and 1841, his father (or possibly a namesake) contributed as a correspondent for the newspaper O Panorama, published by the Sociedade Propagadora dos Conhecimentos Úteis. Additionally, it is known that in 1820, João Batista, Luciano Cordeiro's uncle, and later his father, obtained their "habilitação de genere” — a necessary requirement to access ecclesiastical or public offices in a scholarly capacity.

The family moved to Lisbon a few months after Luciano's birth and, a few years later, to Madeira. Luciano began his secondary education in Funchal and completed it in Lisbon. His dream was to become a naval officer, and in 1862, he was commissioned as a Naval Aspirant. He subsequently took the entrance exam for the Polytechnic School, where preparatory courses for the Naval School were taught. However, a serious health issue prevented him from pursuing a naval career, leading him to leave the navy in 1868. Unable to pursue a career in the navy, he enrolled on the Curso Superior de Letras. At the same time, he studied German at the Torre do Tombo and pursued self-taught studies in economics and politics. One of his earliest professional pursuits was journalism. With strong liberal beliefs, he was invited to manage the newspaper A Revolução de Setembro [The September Revolution] when its director, António Rodrigues Sampaio, took office in 1869. However, Luciano's tenure was brief.

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