Brett Button is accused of driving dangerously fast in fog through a roundabout moments before his bus tipped over and crashed into a guard rail near Greta in the NSW Hunter Valley on Sunday night.
Nine of the 35 passengers died at the scene, while a 10th died a short time later on the way to hospital.
The 58-year-old sat with his head bowed during a short bail hearing in an overflowing Cessnock Local Court on Tuesday.
While the statements of 10 passengers about Button's "prolonged behaviour" before the crash made for a strong prosecution case, magistrate Robyn Richardson agreed his family ties and bail conditions could reduce his risk of fleeing the country or interfering with witnesses.
It was clear Button was suffering along with the rest of the community, which was devastated by the crash, and there were concerns for the driver's wellbeing, she said.
Ms Richardson granted him bail despite strong police opposition.
Button faces 10 counts of dangerous driving occasioning death and a backup charge alleging negligence.
He could expect to be charged over the injuries caused to survivors, including those seriously injured, a prosecutor told the court.
The case was adjourned to August 9.
Earlier, acting Assistant Commissioner David Waddell told reporters Button was driving "too quick to negotiate that roundabout, causing the vehicle to fall on its side".
The guard rail on Wine Country Drive near Greta was a major factor in the severity of the crash and the scene was very confronting for first responders, he said.
"It's a traumatic event for all of the family, all of the friends for what was a wedding, where people come from wide and far," Mr Waddell said.
"It was a very chaotic scene."
Button was taken to hospital for mandatory testing but had emerged relatively unscathed from the crash.
The damaged bus has been moved to Newcastle for further examination.
Interviews with bus passengers, including the 26 injured, continue.
Some 14 remain in hospitals across the Hunter Valley and Sydney, including two in intensive care at Newcastle's John Hunter Hospital.
The group's injuries range from deep cuts to broken bones and prognoses vary.
Police were still working to contact all families of those killed in the crash, who are spread across regional NSW, Melbourne and Queensland.
The victims are aged from their 20s to their 60s.
Premier Chris Minns said trauma counselling centres would open in Singleton and Branxton to help anyone affected by the tragedy.
"It's available for the community to come and get trauma counselling and speak to health professionals if they need to," he told Nine's Today program.
"Everybody in the state has been really traumatised by these terrible events.
"It's the government's responsibility and the local council's responsibility to be there for them not just in the immediate glare of the accident but in the weeks and months to come."
Acting Assistant Police Commissioner Tracy Chapman on Monday said emergency responders smashed the front windscreen of the bus in order to pull people from the wreckage.
The crash was a tragic end to the fairytale wedding of Mitchell Gaffney and Madeleine Edsell, both highly involved members of local AFL club the Singleton Roosters.
The Warrandyte Cricket Club in Victoria, where Mr Gaffney previously lived, said a number of its members were involved in the crash.