Watson was born in Jackson, Georgia, the son of Caroline (née Smith) and Larkin Douglass Watson, Jr., a Teacher. Before his acting career, he received two Purple Heart awards for his Service in World War II. A character actor since 1950, his most notable roles were in the movies Julius Caesar (1953), Sayonara (1957), and The Money Pit (1986). He was also an acclaimed actor on the New York stage, acting in several Broadway and Off-Broadway productions, including the 1952 Broadway revival of Desire Under the Elms by Eugene O'Neill. In addition, he played on such daytime dramatic dramas as Moment of Truth (1965) (a Canadian serial), Search for Tomorrow (1966–1968), and Love of Life (1972–1973).