Born in Liverpool, Potter is a central midfielder who is a product of the Liverpool Academy. He started out at Everton before transferring to Blackburn Rovers and then, Liverpool. He made his senior debut for the Reds on 10 August 2004 as a substitute for Steve Finnan in a UEFA Champions League qualifier against Grazer AK, playing the last five minutes, and the whole of the return leg at home. In total, he made 10 appearances in the 2004–05 season, mostly in cup competitions. He featured in Liverpool's run to the 2005 UEFA Champions League Final, coming on as a substitute in the round of 16 home tie against Bayer Leverkusen. The following season, he was involved in pre-season friendlies and the Champions League qualifying rounds but did not feature in the Premier League. Instead, he saw league action on loan at Championship side Southampton, during the second half of the season. He joined Southampton on loan in January 2006, making a total of 12 appearances, remaining with the club until the end of the season.
Wolverhampton Wanderers
He returned to Anfieldin the summer but was swiftly loaned out again, this time to another Championship club, Wolves, for the 2006–07 season. After impressing, the move was made permanent in a £250,000 three-and-a-half-year deal during the January 2007 transfer window. Potter scored his first and only Wolves goal in the FA Cup against Oldham Athletic on 16 January 2007. His second season with Wolves was less successful though, and manager Mick McCarthy offered him the option of going on the transfer list during the January transfer window to seek more playing time at a new club. Potter rejected the offer and remained at Molineux for the rest of the season, however the club transfer-listed him at its conclusion. After finding no takers for him during the Summer transfer window, he was taken off the transfer list and told to fight for his place.
He failed to appear for his parent club during the first half of the 2008–09 season, and joined Sheffield Wednesday on loan in January 2009, remaining there until the end of the season. Potter scored for the Owls 16 minutes into his debut against Charlton with a 30-yard drive into the bottom corner. He also hit the bar from a free kick in the 4–1 win. He signed for Sheffield Wednesday in a permanent deal on 10 July 2009 for an undisclosed fee. Potter scored his first goal of the 2009–10 season on 22 August in a 4–0 thumping of newly promoted Scunthorpe United. His next goal was to be much later on in the season with a left-footed curler in the bottom corner against Blackpool at Hillsborough on 9 February. Potter added to his tally for the season with a volley against Wednesday's fierce rivals Sheffield United in the Steel City Derby on 19 April. Potter left Hillsborough on 23 June 2011 by mutual consent.
On 23 June 2011, Potter signed a one-year contract for Milton Keynes Dons. On 21 February 2014, Potter signed a new two-year contract extension. On 24 April 2017, after 6 seasons, 266 appearances and 12 goals, Milton Keynes Dons announced that Potter would be leaving the club at the end of the 2016–17 season.
On 14 June 2017, Potter signed a two-year contract with Rotherham United. In December 2017 he suffered an achilles injury which required two operations, and which kept him out of action until the final match of the 2018–19 season. He was released at the end of the 2018–19 when his contract expired.
Tranmere Rovers
On 28 June 2019, Potter signed a one-year contract with Tranmere Rovers.