Around 150 people joined the 25-year-old's family to watch the mainly pink-coloured tributes float away to the skies along with a brief firework display on Tuesday evening.
In a memorial led by her mother Sarah Porter and stepfather Mark Bradley and other relatives, the balloons were released shortly before 6.30pm on a field between the boundary with Grace Academy and Wolverhampton Street, Rough Hay.
Miss Arnold died on March 9 following complications after suffering an asthma attack. She died at Walsall Manor Hospital, where she worked as a ward clinical support worker.
Chloe's aunt Maxine Ormestate, 56, of Great Wyrley, said: "It's an amazing turnout by the community. The balloon tributes are beautiful and everyone has been so kind.
"Chloe was an amazing young lady. She was absolutely lovely, bright, vibrant and at family events she was the life and soul of the party.
"She was great at her job and had good prospects.
"Her mom Sarah and stepdad Mark would like to thank everybody, her friends, neighbours and work colleagues for coming. It was nice to see so many people coming together.
"It was a lovely tribute to my niece who will be sorely missed by us all."
Chloe is also survived by her sisters Mercedes, 22, and Ellie Mae, 10, brother Henley, 11, dad Wayne Arnold, of Willenhall, and boyfriend Jay Beech, 26.
A book of condolence has been set up on ward two at Manor Hospital (where she worked for five years, starting there as a Walsall Healthcare NHS Trust as a cadet), for staff to leave messages. Her colleagues held a minute’s silence in her memory to coincide with the balloon release.
An online fundraising page set up by Paige Greaves to support her family has already raised more than £5,000.
To donate, visit gofundme.com/f/raise-money-for-the-loss-of-chloe-arnold.