The site lies at Sunnerby, one of the most significant settlements on Kållandsö during the Viking Age and early medieval period, with traces of grave fields and an Iron Age longhouse nearby. Around the year 1000 the settlement moved to higher ground, and it was on this slope, just north of Storegården, that the church was later built. It is thought the building was originally known as Sunnerby church, and may only later have acquired the name Sankta Katrine, or Katrine kapell.
The church was probably built towards the end of the twelfth century as a rectangular nave with a narrower, straight-ended chancel, its walls constructed from dressed sandstone. An entrance on the south side was later bricked up and replaced by a west doorway, coinciding with the addition of a timber tower. Historians believe the church may have fallen into disuse as early as the medieval period, possibly linked to the Black Death.
In 1668 the nobleman Magnus Gabriel De la Gardie, who held the surrounding estate, had the ruined church restored and established a hospital and school beside it, similar to one he had founded in Lidköping. The estate of Storegården was assigned to support the institution, and the tower underwent repairs as late as 1684. This revival proved short-lived: in 1689 the hospital and its funding were transferred to Skara by royal order, and the church was left to decay once again.
By the 1690s reports described serious rot damage to the roof and tower, and no repairs followed. When the parish church at Sunnersberg needed enlarging in 1707–09, permission was sought to use Katrine kapell as a source of building material, including its pulpit and altarpiece; the older structure was consequently dismantled.
Descriptions from 1871 and 1913 recorded only fragmentary foundation stones and a solitary stone grave-cross marking the former churchyard, by then used as a kitchen garden. Archaeological investigations between 2004 and 2007 uncovered the nave's foundations, along with cultural layers containing pottery, animal bone and post-holes dating from the tenth and eleventh centuries, though little survived of the chancel walls.