Born in Charleston, Dye was an Eagle Scout and graduated salutatorian from Charleston High School. He earned a Bachelor of Business Administration degree in 1957 and a LLB in 1959, both from the University of Mississippi. During his undergraduate years, he was an active member of student government serving as treasurer and then president of the Associated Student Body. Dye was an Ole Miss cheerleader and was a member of Pi Kappa Alpha Fraternity. He was also selected a member of the Ole Miss Student Hall of Fame. As a law student, he was a member of Phi Alpha Delta legal fraternity.