Bali was the king of Asuras, who ruled his kingdom with generosity. He was a powerful king and was also known as Mahabali or Māveli. He was born to Virochana and Devamba.
However, his childhood flourished under his grandfather’s supervision. His grandfather’s name was Prahlada, who has a great significance in the Indian mythology. He guided Bali in the path of righteousness and generosity, right from his childhood days.
After his grandfather, Bali took over as the new king of Asuras. His reign as the king brought about peace and harmony. People started leading a life of happiness and prosperity, and peace prevailed all across the kingdom. Eventually, Bali started out to expand his kingdom, so that he could bring the entire universe under this able rule.
He then conquered all the three worlds, the heaven, the earth, and the Patala, which is the underworld. He annexed the heaven or the DevaLok from the Devas. Indra, the king of Devas then approached lord Vishnu to help them regain the position of heaven.
Lord Vishnu visited Bali in Vamana’s avatar, who was a young Brahmin boy. This was his 5th reincarnation. At this time, Bali was performing the Ashwamedha Yaga in heaven, as per the suggestion of his guru, Sukracharya. That rite was supposed to make him the immortal lord of all the three worlds.
During this time, Vamana approached Bali and appealed him to grant him some land. He told him that he would need the area of land, which he could cover in just three steps. Bali agreed to the request, but the three steps of Vamana covered all the three worlds.