Claudia was sixteen when she met Matthew Blaisdel and became pregnant. Her daughter was born in 1968 and the three began life as a happy family. Ten years later, Claudia suffered a complete mental breakdown that required her to be institutionalized for two years. Upon her release, Matthew stood by her despite his love for another woman.
It was while Matthew and Walter Lankershim were working as wildcatters that Claudia met Steven Carrington. Matthew felt sorry for Steven because he was being ostracized for being gay, so he invited Steven home to dinner. Claudia found him to be sweet and charming. They became quick friends and the friendship soon turned into a loving affair. She was forced to disclose the affair during the Ted Dinard trial and was horrified when Matthew entered the courtroom and listened to her confess to sleeping with his friend.
While trying to avoid him after her confession, Claudia took Lindsay and tried to leave Denver. Emotionally unstable, Claudia lost control of her car and had a serious accident. Claudia was hospitalized with a concussion and other injuries. Lindsay was uninjured and released to her father. Still furious over Claudia's affair, Matthew packed up his daughter and left Denver for good.
When Claudia was faced with live alone she attempted suicide. Blake hired Nicholas Toscanni to care for Claudia and moved her into the Carrington mansion. Blake also gave her a job at Denver Carrington to help her get her mind off of her problems. It was while she was working at Denver Carrington that Cecil Colby bribed her with information about Matthew and Lindsay in exchange for spying on Blake's business dealings. When news came that Matthew and Lindsay were presumed dead after an accident in Peru as well as learning about Matthew's affair with Krystle, Claudia shot herself in the head.
Claudia survived the shooting but once again fell into a state of insanity. She was one of the suspects when Little Blake was kidnapped after being seen with what appeared to be a baby. The police, Carringtons and Colbys confronted her on a roof causing her to drop the "baby", which turned out to be a porcelain doll. Claudia is taken into custody and sent back to High Grove Sanitarium.
A year later, Claudia was doing much better and was released. Steven was the first person to welcome her back to the "real" world and the two ended up in bed together. When Blake sued Steven for custody of his son, Claudia had quite a few run-ins with Sammy Jo. Finally having had enough, Claudia suggests a plan to Steven that works perfectly; they took Danny, flew to Reno and got married. The judge dismissed Blake's suit the following day and Claudia returned to the mansion as Mrs. Steven Carrington.
Life was going beautifully for Steven and Claudia until flowers began mysteriously arriving with a note attached reading "Remember... Lancelot." Claudia was spooked because that was her nickname for Matthew. Phone calls also began coming in. It was always Matthew's voice and seemed to be a loop. She discovered that Matthew's mother had sold the tape to Morgan Hess, who had been hired to torture Claudia by Sammy Jo.
When Steven began to show interest in Luke Fuller, Claudia had an affair. Steven refused to forgive her for her indiscretion. They separated and eventually divorced. Being the "concerned" brother-in-law that he is, Adam gives her the attention that Steven no longer does. They wind up becoming involved and despite Blake's objections, get married in San Francisco. Adam and his new wife remain in the Carrington mansion, making life at home very strained until they too split.
Claudia eventually learns how calculating Adam is when she discovers paperwork proving he tricked his ill father into giving him power of attorney over Denver Carrington. She blackmails her estranged husband into giving her back Lankershim-Blaisdel One by threatening to go to Blake with what she knows. Adam signed the worthless well back over to her. Claudia goes on a massive shopping spree before discovering that the well is totally worthless. Distraught over the way her life has turned out, she lights candles in a suite at La Mirage. One of the candles fell out of its holder and lit the draperies on fire. Claudia was trapped inside the burning inferno and died.