Schreck was born in Berlin-Friedenau, on 6 September 1879. He received his training at the " (the State Theatre of Berlin). He completed his studies in 1902. He made his stage debut in Meseritz and Speyer. He then toured Germany for two years appearing at theatres in Zittau, Erfurt, Bremen, Lucerne, Gera, and Frankfurt am Main. Schreck then joined Max Reinhardt's company of performers in Berlin. Many of Reinhardt's troupe made a significant contribution to movies.