Baker was born into a staunch Methodist family, the youngest son of Birmingham Gas Department's chief accountant, Charles Frederick Baker and Millie Baker. His early schooling was at King Edwards Grammar School. His elder brothers, Leonard and Norman studied law, and he had a sister, Edna who was the oldest of them all. In his teens Baker began to question what religion meant to him and decided to become a Quaker, since it was closer to what he believed in.

Throughout his practice, Baker became well known for designing and building low cost, high quality, beautiful homes, with a great portion of his work suited to or built for lower-middle to lower class clients. His buildings tend to emphasise prolific - at times virtuosic - masonry construction, instilling privacy and evoking history with brick jali walls, a perforated brick screen which invites a natural air flow to cool the buildings' interior, in addition to creating intricate patterns of light and shadow. Another significant Baker feature is irregular, pyramid-like structures on roofs, with one side left open and tilting into the wind. Baker's designs invariably have traditional Indian sloping roofs and terracotta Mangalore tile shingling with gables and vents allowing rising hot air to escape. Curved walls enter Baker's architectural vocabulary as a means to enclose more volume at lower material cost than straight walls, and for Laurie, "building [became] more fun with the circle." A testament to his frugality, Baker was often seen rummaging through salvage heaps looking for suitable building materials, door and window frames, sometimes hitting a stroke of luck as evidenced by the intricately carved entry to the Chitralekha Film Studio (Aakulam, Trivandrum, 1974-76): a capricious architectural element found in a junk heap.  Baker made many simple suggestions for cost reduction including the use of Rat trap bond for brick walls, having bends in walls that increased the strength and provided readymade shelves, thin concrete roofs and even simple precautions like shifting dug up soil into the built area rather that out of it. He advocated the use of low energy consuming mud walls, using holes in the wall to get light, using overlaid brick over doorways, incorporating places to sit into the structure, simpler windows and a variety of roof construction approaches. He liked bare brick surfaces and considered plastering and other embellishments as superfluous.  Baker's architectural method is one of improvisation, in which initial drawings have only an idealistic link to the final construction, with most of the accommodations and design choices being made on-site by the architect himself. Compartments for milk bottles near the doorstep, windowsills that double as bench surfaces, and a heavy emphasis on taking cues from the natural condition of the site are just some examples. His Quaker-instilled respect for nature lead him to let the idiosyncrasies of a site inform his architectural improvisations, rarely is a topography line marred or a tree uprooted. This saves construction cost as well, since working around difficult site conditions is much more cost-effective than clear-cutting. ("I think it's a waste of money to level a well-moulded site") Resistant to "high-technology" that addresses building environment issues by ignoring natural environment, at the Centre for Development Studies (Trivandrum, 1971) Baker created a cooling system by placing a high, latticed, brick wall near a pond that uses air pressure differences to draw cool air through the building. Various features of his work such as using recycled material, natural environment control and frugality of design may be seen as sustainable architecture or green building with its emphasis on sustainability. His responsiveness to never-identical site conditions quite obviously allowed for the variegation that permeates his work.

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