With cornerback Chris Harris held out with a concussion, Bailey lined up at his customary left cornerback spot for much of the workout.
Bailey has not played in a game this season and had not practiced fully since suffering a left foot injury in an Aug. 17 preseason loss to Seattle.
"With Champ, obviously, we've been smart, the medical people have done a fantastic job," Broncos coach John Fox said. "He had a very, very good workout [Wednesday]."
As he was leaving the locker room, Bailey said he thought the practice "went really well."
Denver (5-0) is coming off a game in which it surrendered 506 passing yards and five touchdowns to Dallas Cowboys quarterback Tony Romo in the Broncos' 51-48 win. Next up: the nearly four-touchdown underdog Jacksonville Jaguars (0-5) on Sunday in Denver.
"I know from a team standpoint it's great to see No. 24 back out there," Peyton Manning said. "… I know how hard he's worked to get healthy, to get back out there. I know he's tried to be smart about it and at the same time trying his best to get out there in a hurry."
Broncos safety Duke Ihenacho said Bailey's return is a welcome sight.
"He's seen every play in the book, he sniffs out plays better than I've seen anybody sniff out plays," Ihenacho said. "… And he got a pick today, he got a pick so he'll be ready. I think Champ will be fine, we're excited to have him back and he's going to improve our defense a lot."