The chapel owes its existence to Olof Johansson Broman, the determined provost of Hudiksvall, who paid for its construction himself after failing to secure support from others. He had the timber chapel built in Hudiksvall and, on 27 June 1736, had it transported out to Kråkön for assembly. According to one source, the chapel was consecrated shortly afterwards, on 11 July 1736, though this precise date is not confirmed by all accounts. A memorial tablet to the right of the altar records Broman's role in funding the building for the benefit of the island's inhabitants.
The chapel stands on raised ground at the edge of Kråkö harbour, with its bell housed in a separate wooden stapel by the west wall. Below the chapel is the old priest's chamber, once used during visiting clergy's stays and now said to serve largely as a small museum.
Inside, the pulpit was bought in 1755 from Idenor Church and later altered during a substantial restoration in 1851–52; the altarpiece is also traditionally said to originate from Idenor and was modified at the same time. A carved wooden dove is suspended above the pulpit, and a crystal chandelier — unusual for a modest archipelago chapel — was presented to mark the chapel's centenary in 1836, reportedly a gift from a Captain Schwartz. The enclosed box pews are thought to date from the original 1736 building.
Several votive ships hang inside, added well after the chapel's founding: a caravel made by a Hudiksvall craftsman was given for the bicentenary in 1936, and a four-masted barque was donated in 1945. An eighteenth-century oil painting above the entrance depicts the return of the prodigal son, while portraits on the walls include a copy of a depiction of Olof Broman and a portrait of King Karl IX, who had granted Kråkön and neighbouring islands to the town of Hudiksvall.
A shared burial ground serving both Kråkön and the neighbouring island of Agön lies nearby.