The chapel's origins lie in the long history of organised Church ministry to the Sami population of Jämtland and Härjedalen, which developed through the eighteenth and nineteenth centuries via dedicated Sami parishes, schools and travelling catechists. As reindeer grazing grounds shifted increasingly into the Undersåker mountain areas, the journey to the existing chapel at Handöl became impractical, and Vallbo—already a customary meeting point for herders and farmers during reindeer separation and slaughter—was chosen for a new chapel. Proposals were raised in 1860 and the building completed in 1863, some seventy years before a road reached the village. A widow, Kerstin Ersdotter, donated the land for the chapel and its burial ground, with her son Jon Jonsson, later known locally as the 'Lapp King' or 'Vallbo King', said to have overseen the construction work.
The chapel is built of timber post construction, with three windows along each long wall, two in the sacristy and two in the tower. It measures a modest 16 by 10 Swedish ells, panelled in wood inside and out, with a boarded vaulted ceiling and wooden floor. The pulpit, placed centrally above the altar, forms the visual focus of the small interior.
Among the fittings, the most notable is the Baroque-style pulpit, brought from the old church at Mörsil and attributed to the woodcarver Jonas Granberg, with an inventory record suggesting it dates from 1756. It is decorated with carved figures of the four evangelists in gilt and silver-coloured robes against a dark green ground, with silver scrollwork and gold ornament. Parts of the altar and older vestments were likewise brought from Undersåker church. Other furnishings reflect the chapel's Sami and reindeer-herding context, including kneelers and a prayer stool covered in reindeer hide, a tin communion set, and a bridal crown plaited from birch root, said to have been donated by Gertrud Nilsson.
By the late 1930s the chapel and its older fittings needed conservation, including removal of overpainting from the pulpit, which was restored to its original colours before the chapel was reconsecrated in 1942. The small organ, built around 1870 by an unknown organ builder for the chapel's master builder Jon Jonsson, was partly rebuilt in 1942 and restored again in 1972.