It was initially established in February 1925, based on a male church choir who sang in the Ukrainian Autocephalous Orthodox Cathedral in Poltava under the direction of Fedir (Khvedir) Popadych.
From 21 December 1926 until 1 October 1928, the ensemble was known as the "Bandura Studio of the Poltava Region Bureau of Political Education".
The ensemble gave 249 concerts before 122,825 listeners performing in Poltava and regions, the Donbas, Odessa, Kharkiv, Kremenchuk, Romny, Kherson and Mykolayiv.
The members switched over to diatonic Kharkiv instruments made by Poltava bandura maker - Hryhory Paliyevetz.
The technique of the members of the Capella grew considerably and the new repertoire composed and arranged by Hnat Khotkevych opened up new aspects of the bandura previously never explored.
At the completion of the studio period with Hnat Khotkevych the group had a concert examination in Kharkiv at the Korolenko Library Auditorium on 22 January 1930, attended by musical dignitaries of Ukraine.
In 1931, after a successful performances in Moscow, the ensemble was chosen to be the first artistic group from the Soviet Union to tour North America.
In January 1934 the artistic director, Volodymyr Kabachok, was arrested after a concert by the Capella in Kiev and did not return to the group.
With his arrest most of the scores used by the Capella which included many original handwritten manuscripts composed and arranged by Hnat Khotkevych specifically for the group were confiscated.
It pioneered the Kharkiv style of playing the bandura within a bandurist capella which allowed the use of unique technical devices not possible on other instruments.