A simple chapel building is thought to have existed at Öje as early as the 1500s, replaced by a new structure in 1655. By the early 1800s that building had fallen into such disrepair that a complete rebuilding was needed. Work began in 1828, and a new chapel of red-tarred log construction, with a broken roof and a west tower, was consecrated in 1830.
The chapel gained its present external appearance in 1912, when the tower was enclosed within an extension of the nave and given a new bell-shaped cap with a small spire. The exterior was clad in board and painted white. Interior changes at the same time altered much of the original character of the building.
A thorough restoration at the end of the 1950s sought to recreate the appearance of the nineteenth-century interior, involving changes to the pews, wall coverings, windows and colour scheme, along with the relocation of the pulpit and installation of a new organ. Further external work in the 1980s added a canopy over the west entrance and copper roof cladding.
Despite these many alterations, several notable furnishings survive. The pulpit dates from around the mid- to late 1600s; its maker is unknown, but it originally stood in the old church at Venjan before being bought for Öje in 1796. Its carved figures depict Christ and the evangelists.
The gallery front is decorated with painted panels in the traditional Dalarna folk-painting style, put up in 1835. The five panels combine biblical and folk motifs and are flanked by two text boards, with much of the original painting still preserved.
The chapel also holds a late-medieval wooden processional cross, probably of local workmanship from around 1500, with faded painted decoration showing Christ on one side and the Virgin Mary on the other.