Felton Jeffrey Capel III was born February 12, 1975, in Fayetteville, North Carolina, into a basketball family. His father, Jeff Capel II, was a college head coach who built programs at Fayetteville State, North Carolina A&T, and Old Dominion, compiling 201 victories and two NCAA Tournament appearances. Before coaching, the elder Capel had served in the United States Army from 1971 to 1975. Jeff III’s younger brother, Jason, would go on to play four years at Duke’s archrival North Carolina and later became head coach at Appalachian State.
Jeff III grew up immersed in the game. By age three he was shooting baskets. At ten, he attended a Wake Forest team camp with his father’s Pinecrest High squad. By fourteen, he was playing AAU basketball with the Charlotte Sonics, teaming with future NBA players Jerry Stackhouse and Jeff McInnis. In 1992, the Sonics reached the AAU national championship game in Winston-Salem, though an injury sidelined Capel for the final against a team featuring Allen Iverson and Joe Smith.
At South View High School in Hope Mills, North Carolina, Capel became the best player in the state. As a senior in 1993, he led South View to a 31–1 record and the state championship, scoring the game-winning layup with seconds remaining in a 53–52 victory over Charlotte South Mecklenburg. He was named the 1993 North Carolina High School Player of the Year and a Parade All-American, setting school career records in points (2,066), rebounds (668), and assists (663). He chose Duke.