Step 1: Concept
The sum of the first $n$ terms of a G.P. is $S_n = \frac{a(r^n - 1)}{r - 1}$ for $r > 1$.
Step 2: Analysis
Given $S_n = 1023$, $a = 1$, and $r = 2$.
$1023 = \frac{1(2^n - 1)}{2 - 1} \implies 1023 = 2^n - 1$.
Step 3: Calculation
$2^n = 1024$.
Since $2^{10} = 1024$, we have $n = 10$.
Final Answer: (C)