The inmates were convicted of rioting and mutiny following unrest last March at Jaw prison south of the capital Manama, the source said.
The charges included "disobeying orders and forcing guards out of the prisoners' buildings" and then "destroying furniture, air conditioners and security cameras", the source said.
Security forces finally stormed the buildings and clashed with the rioting prisoners, resulting in casualties among police and inmates, the source added.
It was not clear what caused the riot in Bahrain's largest prison that is used for Shiites convicted over anti-government protests.
Bahrain's Sunni authorities crushed Shiite-led protests a month after they erupted on February 14, 2011.
The strategic Shiite-majority, Sunni-ruled kingdom lies across the Gulf from Shiite Iran and is home to the US Fifth Fleet.