Kanhaiyalal was born in Varanasi into a theatrical family. His father, Pandit Bhairodutt Choube, owned a drama company but disapproved of his son’s interest in acting. Undeterred, Kanhaiyalal began working backstage and gradually transitioned into small stage roles. After his father's death, he moved to Bombay to pursue a career in cinema—initially aspiring to become a writer and director. However, fate had other plans, and he made his screen debut as an extra in Sagar Ka Sher.