Paul Taylor came out on top in a two-horse race with 318 votes, beating Conservative candidate Norma Bacon into second on 116 votes.
The seat had been won for the Tories in 2019 by Samuel Tapper, who resigned in August ahead of a move to Japan.
Mr Taylor, who is also a Burntwood Town councillor, said: "Thank you very much to everybody in Chasetown. I am honoured to have been voted to represent the ward."
The result takes the number of Labour councillors in Lichfield to 11, with the party now controlling both Chasetown seats.
The Conservatives still dominate the authority with 33 councillors.