It is located on the island of Newfoundland and is located at the southeast corner of Trinity Bay, approximately 100 km (62 mi) west of St. John's and two km (one and a half miles)[3] from the Trans-Canada Highway.

There is a well constructed breakwater with landing and docking facilities and a community building used for storage.

With the ongoing construction of the Vale Canada hydro-metallurgical facility in Long Harbour, Chapel Arm has seen a sharp spike in employment and prosperity over the last several years.

According to M. F. Howley, it was named for Lieutenant Edward Chappell, who sailed up Trinity Bay in 1818 (Encyclopedia of J.R. Smallwood).

The name of Chapel Arm goes back to 1765–1772, when James Cook and Michael Lane surveyed the coastal waters of Trinity Bay.