Why the creek was named this is unknown; it does appear on a federal government map as early as 1916. Chelsea is an area of London, England. It may mean "landing place for chalk or limestone", or it may be from the Old English cælk, meaning cup or chalice. Another local name identified for this feature is the Narrows Creek.

Flows south-west into Ells River approximately 91 km north-west of Fort McMurray.