Straily, who was released by the Miami Marlins at the end of spring training, is set to make $575,000 plus an additional $250,000 if he is traded, Craig Mish of SiriusXM reports.
General manager Mike Elias said the plan is to use Straily in his accustomed role as a starting pitcher.
"We pursued (him) immediately once he became available," Elias said, according to Dan Connolly of The Athletic. "He is the type of accomplished MLB starter who will stabilize our pitching staff. We are hoping to work him into our rotation soon."
Baltimore's rotation currently includes Alex Cobb, Andrew Cashner, Dylan Bundy, and David Hess. Right-hander Nate Karns has been used as an opener on two occasions but has pitched a total of four innings. It remains to be seen who will lose the spot.
A few teams made big-league offers to the veteran hurler before he elected to sign with the Orioles, Jon Heyman of MLB Network reports.
The 30-year-old Straily spent the last two seasons in Miami after stints with the Oakland Athletics, Chicago Cubs, Houston Astros, and Cincinnati Reds.
Straily was very effective in his first season with the Marlins but scuffled in 2018 due to a forearm injury. He was limited to 23 starts, going 5-6 with a 4.12 ERA and 1.30 WHIP.