Granny Goodness did not begin as one of the higher-level residents of Apokolips, but was instead one of the "Lowlies" - the brutally-oppressed peasant class. She was removed from her parents and trained to be one of Darkseid's "Hounds" (his elite soldiers). One part of their training was to train their dog; Goodness named hers Mercy. Through combat and training, the two bonded. As the final step of her initiation into life as a Hound, she was told to kill her beloved pet. Instead, she killed her trainer for ordering this. When Darkseid asked why, she answered that "to have done otherwise would have robbed my lord of a most valuable asset," telling him that Mercy would obey her first, but him foremost. Testing this, Darkseid ordered Mercy to kill Goodness. Mercy attacked Goodness, forcing Goodness to kill her pet. Darkseid was impressed, telling Goodness that she had graduated with honors. "You have trained Mercy so well in my name that perhaps you'll do as well training others whose blind obedience I will one day require."
Darkseid had Granny run the training facility for his elite soldiers, where she uses brainwashing and torture, in a brutal parody of child care, to turn the innocent into fanatical warriors willing to kill or die for Darkseid's glory. Since the war between Apokolips and New Genesis first moved to Earth, Granny Goodness has often run Earthly orphanages, looking for potential warriors for Darkseid.
Granny runs the "orphanage" on Apokolips and is the chief of the Female Furies. She also raised Scott Free, the son of Highfather of New Genesis who had been traded for Darkseid's son as part of a peace treaty. Scott Free (AKA Mister Miracle) became the first child to successfully escape one of her Orphanages.