Madgetta Thornton Dungy was born in Lynchburg, Virginia in 1942 to Madge Meadors Thornton and Edgar T. Thornton. In 1964, she became the first African American woman to graduate from Cornell College in Iowa. She earned a bachelor's degree in political science. Thornton married Claiborne I. Dungy, a pediatrician, and they raised two children, Kathryn and Camille, while pursuing their careers.

Dungy earned a master's degree in higher education from the University of Colorado in 1974 and a Ph.D. in higher education administration from the University of Iowa in 1997. Her dissertation focused on the experiences of African American students in graduate school in the 20th century, and relied on oral histories which she conducted.

Aside from working for the Girl Scouts of Orange County in California, Dungy's professional career was spent in higher education administration. Over her career, Dungy worked at six different universities in positions concerning admissions, multicultural affairs, advising, financial aid, and minority student programs. For over a decade, she served the University of Iowa as the Assistant Dean for Faculty Affairs at the University of Iowa's Carver College of Medicine. Dungy was also an active community member. She beloned to the Iowa Women's Foundation and to the Links organization, an African American women's foundation.