Born Volodymyr Palahnyuk (Ukrainian: Володимир Палагнюк) in the Lattimer Mines section of Hazle Township, Pennsylvania, Palance was of Ukrainian and Polish descent and the son of an anthracite coal miner. He also worked in coal mines during his youth before becoming a boxer.

In the late 1930s, Palance started a professional boxing career. Fighting under the name Jack Brazzo, Palance reportedly compiled a record of 15 consecutive victories with 12 knockouts before losing a decision to the future heavyweight contender Joe Baksi.