Taurasi grew up in Chino, California and attended Don Antonio Lugo High School where she was the recipient of the 2000 Cheryl Miller Award, presented by the Los Angeles Times to the best player in Southern California. She was also named the 2000 Naismith and Parade Magazine National High School Player of the Year. Taurasi finished her prep career ranked third in state history with 3,047 points (behind Giuliana Mendiola's 3,069 and Cheryl Miller's 3,446). Taurasi was named a WBCA All-American. She participated in the 2000 WBCA High School All-America Game, where she scored twelve points, and earned MVP honors.
Taurasi was born to her parents Mario and Liliana. Taurasi has an older sister, Jessika. Her father was born in Italy and raised in Argentina, which is also the native land of her mother Liliana. Her parents moved to the U.S. before she was born. Diana's father was a professional soccer player in Italy. He had logged several years as a goalie.