The winger made an immediate impression from the substitutes' bench against Newcastle United on Tuesday night, providing the assist for Villa's consolation goal in a 3-1 defeat.
Bailey is rewarded with an opportunity in the starting lineup ahead of Moussa Diaby, with Unai Emery making two changes to his side.
Matty Cash has been dropped to the bench in favour of Diego Carlos coming back into the team, resulting in Ezri Konsa moving out to right-back.
New signing Morgan Rogers has been named among the replacements, as is Calum Chambers who may have left Villa on deadline day.
Meanwhile, Chris Wilder has made as many as five changes to his Sheffield United team from the 3-2 defeat at Crystal Palace.
Goalkeeper Wes Foderingham returns between the sticks to replace Ivo Grbic, who received a knock to the head during the game at Selhurst Park.
Mason Holgate is brought in for his debut, while Rhys Norrington-Davies, Andre Brooks and William Osula are also selected for the Blades.
Jack Robinson, Gustavo Hamer, Anis Ben Slimane and Oli McBurnie are the other players to miss out on places in the team.
Sheffield United: Foderingham; Bogle, Ahmedhodzic, Holgate, Trusty, Norrington-Davies; Souza, McAtee, Brooks; Brereton-Diaz, Osula
Subs: Amissah, Hamer, Archer, Norwood, Robinson, Davies, Osborn, One, Larouci
Aston Villa: Martinez; Konsa, Carlos, Lenglet, Moreno; McGinn, Kamara, Luiz, Tielemans; Bailey; Watkins
Subs: Olsen, Wright, Cash, Chambers, Diaby, Rogers, Kesler-Hayden, J.Ramsey, Iroegbunam