The chapel owes its existence to the Blåhult chapel association, formed in 1934 to gather funds and materials for a local place of worship. Timber was donated by residents, who also helped with the construction, working from designs drawn up by the merchant Evald Gillbrand. The building work was carried out by master builder Oskar Johansson of Gälleberg, and the chapel was consecrated in 1936.
Architecturally, Blåhults kapell is a simple, traditional timber building with red-painted board-and-batten cladding and a tiled roof. The interior is plain, its only fixed decoration being a painted chancel window. The chapel faces north at the chancel end, and the plot is enclosed by an unpainted wooden fence with openings to the west and south, the western one marked by black-painted timber gateposts and the eastern by a wooden gate. A row of birch trees lines the approach from the road.
The chapel association was dissolved in 1959, after which the surrounding Daretorp parish (later merged into Hökensås parish in 2010) took over responsibility for the building and its activities. A freestanding bell tower was erected to the north of the chapel in 1965; its hand-rung bell, cast the same year, weighs 110 kilograms.
Among the furnishings, sources mention more than one altarpiece: one account credits a painting donated by the former precentor of Daretorp, Paul Grafström, while another describes a different altarpiece, a gift from Fritz Pettersson and attributed to an artist named Loman, whose identity is uncertain. A pulpit is said to have been made by the local church officer, Robert Blomberg of Blåhult. The chapel is small, seating around 50 people, reflecting its origins as a modest community project rather than a grand ecclesiastical building.