O'Grady was optioned to Triple-A El Paso on Saturday.
O'Grady had been occupying Trent Grisham's roster spot while the latter was on the injured list with a bruised heel, but O'Grady will now head back to the minors in conjunction with Grisham's activation. In 44 plate appearances with the Padres, O'Grady has slashed .167/.279/.333 with a home run and five RBI.