The son of a country music enthusiast, Dunn was born in Coleman, Texas, and raised in Tulsa, Oklahoma. Playing in bands since his teens, he briefly studied psychology and theology at Abilene Christian College. Expelled from the school for "performing in honky tonks," he continued to attract attention with his Tulsa nightclub performances. Although Dunn recorded several tunes for Churchill Records in 1983 and 1984, none provided a breakthrough. He fared much better four years later, when an appearance in the Marlboro National Country Music talent contest led to an opportunity to record in Nashville. Brought together with Brooks, who despite writing songs for Crystal Gayle and the Oak Ridge Boys had found little success with his own recordings (by Tim DuBois), Dnn finally discovered a formula for success.