The petite redhead began her career in theater, and in addition to acting, also worked as a set and costume designer. (At the time, she was recovering from two broken legs, the result of being struck by a car whose driver was drunk.) She joined a road company of "Charley's Aunt", and when it returned to Los Angeles, company star Roddy McDowall helped launch her career by introducing her to casting directors. Potts made her screen acting debut in a leading role in "Corvette Summer" (1978), as a comical prostitute who hooks up with a high schooler, beginning a persona as slightly off-the-wall but experienced types who befriend people caught in strange situations. That same year, she also had a small role in "King of the Gypsies", and she later won a Genie for "Heartaches" (1982), as a pregnant woman who pals around with a man-hunting Margot Kidder. Returning to the teen pic genre where she started, "Pretty in Pink" (1986) had Potts personify the 1960s as Iona, a funky record store manager and ex-peacenik who becomes a mother figure and close friend to a younger woman (Molly Ringwald). She walked off with the best reviews as Jeff Bridges' moody wife in "Texasville" (1990), the lackluster sequel to "The Last Picture Show" (1971). She also garnered legions of new fans (many of them under 12) as the voice of Bo Peep for the animated smash "Toy Story" (1995) and its equally impressive sequel "Toy Story 2" (1999).

Potts began showing up regularly on the small screen debuting with the failed pilot "Hollywood High" (NBC, 1977) but quickly redeemed herself in the TV-movies "Black Market Baby" (ABC, 1977) and "Flatbed Annie & Sweetpie: Lady Truckers" (CBS, 1979). In the latter, she was a trucker who tries to keep her rig out of the hands of hijackers and the repo man. Landing the role of Mary Jo on "Designing Women" proved she could hold her own with the likes of the scene-stealing Delta Burke. Following Susan Dey's exit from "Love & War" after the first season, Potts joined the cast in 1993 and enlivened the CBS sitcom for two years as gourmet chef Dana Paladino who, besides mothering the cafe regulars, was constantly at odds with her new-found boyfriend, an abrasive sportswriter played by Jay Thomas. Her next venture in TV series found her in a dramatic role, inheriting Michelle Pfeiffer's feature role of LouAnne Johnson in "Dangerous Minds" (ABC, 1996-97). Despite her past TV exposure in sitcoms, Potts received excellent reviews from critics who found her savvy Southerner image and sharp, edgy energy surprisingly well suited for the role of a dedicated inner-city schoolteacher.

Despite its positive notices, "Dangerous Minds" failed to attract enough of an audience to survive beyond one season. The following fall, Potts sought to return to her sitcom roots starring opposite Tim Curry in "Over the Top", but the series faced a troubled pre-production and the end result impressed neither viewers nor critics and was summarily cancelled. Undaunted, Potts looked for another small screen vehicle and hit pay dirt with "Any Day Now" (Lifetime, 1998-2002), a gentle drama focused on the relationship between a Caucasian homemaker and a high-powered African-American lawyer (Lorraine Toussaint) whose friendship stretched back to the 60s.