The Augustinian priory was founded in the 12th century by Peter Corbizun, afterwards Peter de Studley, who transferred to Studley a priory of Augustinian Canons that he had founded at Witton, Worcestershire.
When the priory was closed c.1536 at the dissolution under Henry VIII it housed the prior and eight religious brethren. The priory and manor of Studley were granted to Sir Edmund Knightley shortly after the suppression and the buildings used by him as a source of stone for other buildings. 
Nothing remains today apart from the use of the name priory in a few local building names such as Priory Farm which, now much modernised, embodies a few fragmentary portions of a conventual building and is a Grade II* listed building. A gabled west wall of stone rubble contains the remains of a large 14th century window. A few medieval sculptured fragments are built on to the walls.