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Clarity measures the flawlessness of a diamond by taking into account the size and number of imperfections that occur within a diamond. Each diamond has internal characteristics that contribute to its beauty and are part of the story of each gem's individual creation. These distinguishing marks are called inclusions and develop naturally during the stone's formation. Even the most spectacular diamond can contain some microscopic crystals, clouds, and feathering, even if only detectable with a gemologist's microscope. Bailey's enforces strict clarity standards many diamond retailers choose to ignore. GIA gemologists reject flaws that many other jewelers accept, including chips, laser drill holes, and any surface openings. Any enhancements made to the diamond, including heat treatment, color adjustment, or augmentation with foreign materials will cause the diamond to be rejected upon inspection. Diamonds from Bailey's are thoroughly inspected both before and after being set. Bailey's will never award a "flawless" grade to a mounted stone, as the setting obscures the grader's view of the diamond.

Clarity is graded using a widely accepted system developed by The Gemological Institute of America in 1955. The scale is based on an examination of a diamond using 10 power magnification in specific lighting conditions. The scale rates a diamond based on the size, number, position, nature, and color of the inclusions naturally present. The higher the diamond is rated, the more valuable and rare it is.

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