In 1782 Baggesen went to Copenhagen to study theology. Three years later, at age 21, he had an unprecedented success in Denmark with his first collection of poems, Comiske fortællinger (1785; “Comical Tales”). Later, after his libretto to the first major Danish opera, Holger Danske (1789; “Ogier the Dane,” music by Friedrich Kunzen), received adverse criticism (mainly because of its supposed lack of nationalism), Baggesen traveled through Germany, Switzerland, and France. The journey became the basis of his most important book, the imaginative prose work Labyrinten (1792–93; “The Labyrinth”), a “sentimental journey” reminiscent of the work of the 18th-century English novelist Laurence Sterne (Sterne, Laurence). Baggesen was variously a Germanophile, a great admirer of Jean-Jacques Rousseau (Rousseau, Jean-Jacques), an ardent supporter of the French Revolution, a disciple of Immanuel Kant (Kant, Immanuel), and a Romanticist and early admirer of Denmark's foremost Romantic poet, Adam Oehlenschläger (Oehlenschläger, Adam Gottlob). Later in life he vigorously opposed Romanticism, carrying on a seven-year feud with Oehlenschläger.

A perennial traveler, attracted to existential harmony but always torn between material and spiritual values, Baggesen found himself at home everywhere and nowhere. His restless existence was tempered only by his sense of humour and absurdity. He has been called a European spirit who “held a passport to the whole world except his own heart.”