Vaughan was born in Courtfield, Welsh Bicknor, Herefordshire. His mother was Louisa Eliza Rolls. An elder brother was Cardinal Herbert Vaughan, Archbishop of Westminster until 1903. Two other brothers from this traditionally Welsh recusant family served as bishops, one as Archbishop of Sydney
Vaughan was ordained to the priesthood on 5 July 1903. He was appointed the Bishop of the Diocese of Menevia by the Holy See on 21 June 1926. His consecration to the Episcopate took place on 8 September 1926, the principal consecrator was Archbishop Francis Mostyn of Cardiff, and the principal co-consecrators were Bishop Joseph Thorman of Hexham and Newcastle and Bishop Thomas Dunn of Nottingham. He was installed on 14 September 1926.
He died in office on 13 March 1935, aged 57.