As in the first game in Edmark's Early Learning series, Millie's Math House, Bailey's Book House is an educational game designed for younger children to use. The interface is completely point-and-click, and instructions are given verbally, repeatable as needed.

The player is taken to the main screen where Bailey sits reading in a chair; around the room are various objects and furniture that lead the player to the activities.

Each activity has two modes; Explore and Discover and Question and Answer. The first mode encourages the player to click around and experiment, emphasizing that he is in charge. In Question and Answer mode, which is entered by clicking the animal inside the picture frame, a character will ask the player to perform tasks related to the current area.