A stone church has stood at Dala since the medieval period, originally built west of the Dala manor house. The present church was constructed in 1877–78 to designs by master builder Peter Anders Pettersson, in a neo-Gothic style using natural stone, limestone and brick. A few furnishings survive from the earlier medieval church, most notably the font, carved from sandstone and dated by different sources to either the 1100s or the 1200s.
An unusual feature that attentive visitors often notice is the church's orientation: rather than the traditional east-west alignment common to most churches, Dala kyrka lies on a north-south axis, with the altar positioned at the southern end. This arrangement is said to reflect the practicalities of the site rather than any symbolic intent.
The church's current appearance dates largely from a 1937 remodelling under architect Axel Forssén, during which the original multi-sided chancel was demolished and replaced, and a new sacristy was added to the east. The work simplified the building's exterior while the interior was replastered and repainted. The pulpit was embellished with figurative carvings by Gunnar E. Ström and given a new sounding board, and the front pews were removed to open up the nave.
Two old bells hang in the tower. The larger was donated to the church in 1653 by Anna Bonde and Bengt Ribbing, while the smaller is of a type similar to one at Saleby church and is thought to date from the earlier part of the 13th century, though it bears no inscriptions to confirm this. The altarpiece, painted in 1907, is an early work by the Swedish artist Olle Hjortzberg.
The church's organ, built in 1893 by Olof Hammarberg and later restored towards its original condition, sits on the north gallery in a case contemporary with the instrument itself. The roof and tower underwent restoration in the 1980s to preserve distinctive architectural details, and the exterior was replastered again in 2020.