The narrative begins with the protagonist, a young horse, being brought to his new home at Squire Gordon’s estate. He is settled into a spacious "loose box," a luxury compared to standard stalls, as it allows for freedom of movement without being tied. The initial reception is marked by kindness from the stablemen, contrasting sharply with the anxieties of transitioning to a new environment. This sense of peace is immediately tested by the introduction of his neighbors, establishing the social hierarchy and dynamics of the stable.
The protagonist quickly meets his stablemates: Merrylegs, a cheerful fat gray pony, and Ginger, a tall chestnut mare. Merrylegs serves as the social guide, warning the newcomer about the importance of having a "good temper." He highlights the temperament of Ginger, who possesses a "bad habit of biting." Ginger’s hostility is rooted in her past, as she claims "no one was ever kind to her," explaining her defensive nature. Despite this, the protagonist maintains a peaceful disposition, noting, "I've never had a fight before, and I don't want to start one now," setting the tone for his character as a gentle and intelligent animal.
Under the care of John Manley, the coachman, and the stable boy James, the protagonist undergoes an evaluation of his fitness and character. John praises his responsiveness, describing him as "quick as a deer with the lightest touch of the reins." Furthermore, his reaction to external stimuli, specifically the "sound of guns" during a rabbit hunt, proves that he is "not frightened," confirming his steady and reliable nature. The Squire and his wife, impressed by his "sweet face and fine, intelligent eyes," officially name him "Black Beauty."
A significant revelation occurs when the staff discusses the protagonist’s lineage. James expresses a preference for the name "Rob Roy," noting a striking resemblance between the two horses. John clarifies the connection, revealing that "Farmer Gray's old duchess was the mother of both of them." This realization connects Black Beauty to his past, explaining his mother's previous distress over the death of his brother, Rob Roy, in a hunting accident.
As the story progresses, Black Beauty integrates fully into the life of the estate. He finds that despite her difficult reputation, Ginger "worked hard at her job" and they become effective partners in the carriage. His friendship with Merrylegs deepens, characterizing the pony as a "cheerful, good-tempered" companion who delights the Squire’s children, Miss Flora and Miss Jessie. Through these interactions, the stable becomes a cohesive community, with other horses like Justice and Sir Oliver rounding out the household. Ultimately, the transition to Squire Gordon’s is portrayed as a positive shift, where the protagonist is surrounded by "kind" handlers and respectful peers, ensuring a stable and secure future.