Born in Duncan, Indian Territory, Ataloa began her education in a one-room school. She received her associate of business from the University of Redlands in California and a master's of art from Columbia University in New York. After attending the Union Theology Seminary and Damrosch Art Institute in New York City, Ataloa turned down a scholarship in Europe, opting to move into teaching, and took a position at Bacone College at Muskogee.

At Bacone, Ataloa taught English and philosophy, collecting donations from free concerts to establish scholarships for Natives. She also worked to collect items of artistic quality for the Bacone College, and on December 2, 1932, saw the Art Lodge dedicated on campus. After her death in 1967, the Art Lodge was renamed the Ataloa Art Lodge in her honor.