Virginia Judy Esterly was born 25 April 1882, at Hillsboro, Oregon to Fredericka Bremer Kelly and Martin Judy. She married Ward Benjamin Esterly before she completed her studies at the University of California, Berkeley, and had two daughters, Josephine and Virginia. After the death of her husband, she proceeded to complete her studies at the University of California for her B.A. degree in 1923. From 1923 to 1930, she was Dean of Women at the University of Oregon. In 1923, she was Acting Dean of Women during the Summer Session of the University of California, and Dean of Women of the Summer Session in 1924. She completed work for her M.A. degree at the University of California in 1929 after a first-hand study of the education of women in Denmark, Sweden, Norway, and Finland. She carried on further graduate study at both the University of Oregon and the University of Southern California. After leaving the University of Oregon, she moved to the community of La Jolla in San Diego, California and became president of the San Diego Y.W.C.A. in 1933.

In 1934, Mrs. Esterly was appointed Assistant to the President and Counselor on Human Relations at Scripps College, and served as secretary to the Board of Trustees. The duties of her position included teaching a course on the American Home, counseling students, and representing the college before a large public. During the war years, she assumed many extra duties and without complaint, relinquished the sabbatical leaves which were her due. She faithfully served the Scripps College community for 12 years.

Mrs. Esterly's interests were many sided. Her early experience as a teacher in China gave her an understanding of the peoples of the East and led to her active interest in the Oriental Studies Society of the Associated Colleges of Claremont, of which she was a director. She was also a member of the Educational Council of the Western Personnel Service, the Association of American Colleges and Universities of the Pacific Southwest, and the Southern Branch of the National Council of Family Relations. She was instrumental in creating the Fine Arts Foundation of Scripps College, and encouraged the work of the Scripps College Press. She also helped establish the Ida Rust Macpherson Collection, the earliest major collection on women at any women's college in the United States.

On 17 May 1946, Mrs. Esterly passed away a few hours after suffering a cerebral thrombosis. In her memory, the Virginia Judy Esterly awards were established in order to recognize Scripps College students who combine the qualities of good scholarship, effective service in student activities, and responsible citizenship.