She began her career with guest appearances on a variety of television soap operas.
Transitioning into feature films, Steel rose to prominence when she was chosen to play the role of Ginny Field in Steve Miner's slasher-horror film Friday the 13th Part 2 (1981).
A commercial hit, Steel was asked by Miner to reprise her role as Ginny in the 1982 3D film Friday the 13th Part III but declined the offer as she feared being typecast.
After her involvement in the Friday the 13th franchise, she was cast as a prominent supporting character in Fred Walton's mystery film April Fool's Day (1986).
Subsequently, Steel had supporting roles in Melvin Frank's comedy film Walk Like a Man (1987), David Greene's remake What Ever Happened to Baby Jane? (1991), and the Bart Mastronardi and Alan Rowe Kelly directed anthology horror film Tales of Poe (2014).
In addition to film, Steel has an extensive television career, starring on the NBC series The Powers of Matthew Star (1982–83), followed by guest appearances on shows such as Family Ties (1982), The A-Team (1983), Quantum Leap (1990), and China Beach (1991).
In the early 2000s, she retired from acting and launched a career as a psychologist.