Hall was educated at King's College, London, and then attended school in Germany. She began her literary career by writing verses, which were later collected into five volumes of poetry. The Blind Ploughman, one of her best-known poems, was set to music by Conigsby Clarke. By 1924 she had written her first two novels, The Forge and The Unlit Lamp. The latter book was her first to treat lesbian love. Adam's Breed (1926), a sensitive novel about the life of a restaurant keeper, won the coveted Prix Fémina and the 1927 James Tait Black Memorial Prize for fiction.

Hall's fame turned to notoriety with the publication of The Well of Loneliness, in which she explored in detail the attachment between a young girl and an older woman. The intense and earnest love story was condemned by the British, and a London magistrate, Sir Chartres Biron, ruled that although the book was dignified and restrained, it presented an appeal to “decent people” to not only recognize lesbianism but also understand that the person so afflicted was not at fault. He judged the book an “obscene libel” and ordered all copies of it destroyed. Later, a decree handed down in a U.S. court disagreed with Biron, finding that discussion of homosexuality was not in itself obscene. The British ban on The Well of Loneliness was eventually overturned on appeal after Hall's death.

Although Hall was vindicated by the American verdict, she did not write any other controversial novels. Among her following works are Twixt Earth and Stars: Poems (1906), Songs of Three Counties and Other Poems (1913), The Master of the House (1932), and The Sixth Beatitude (1936). A novel on which she was working in her declining years was destroyed, at her request, after her death.