The chapel was built in 1844 by the owners of Kilafors ironworks, taking its first services on the first Sunday of Advent that year. Its foundation was funded by the widow of the works' foundry master, madame Hellberg, and it was intended to serve the ordinary people living around Hällbo, as well as farmers from the neighbouring settlements of Herte, Hå and Knisselbo.
Unusually, the chapel has never had its own resident chaplain; parish records and services have instead always been managed from Bollnäs. It also never acquired its own burial ground, since the distance to the churches at Bollnäs and Hanebo was considered close enough that a separate churchyard at Hällbo was thought unnecessary.
The tower was not part of the original building but was added in 1872, after the Hällbo ironworks blast furnace itself had closed down. In the 1960s the chapel underwent a thorough renovation, during which the old gallery above the altar was removed and a small kitchen area created in its place.
The chapel's organ has a long history of its own. An instrument built between 1845 and 1847 by Nils Jansson was moved into the church in 1856, then relocated to a choir gallery above the sacristy in 1872. It was rebuilt in 1903, moved again to a west gallery in 1968, and restored in 1991, retaining much of its older material and mechanical action along the way.