Gather your materials. Chisel handles can be made from almost any type of wood. Some favorites include oak, maple and apple. Make sure that the diameter of the wood will accommodate the tang of the chisel. Leave enough wood to fit your grip when the tool is finished. Measure the length of the tang, allowing for extra wood to "seat" the tang and cut the wood.
Prepare the shape of the wooden handle. Some woodworkers prefer round handles. For this shape, use a lathe. Woodworkers who prefer handles with a grip will shave or plane the wood into octagon shapes. At this point, add a stain or polish to the handle. Tung oil will give the handle a shine without slipping.
"Seat" the tang of the chisel. Measure the tang of the chisel. Bore a hole into the chisel handle that is the length of the tang. This can be a uniform-sized hole or a series of "stepped" holes. Tap the tang of the chisel into the handle. Make sure that the tang fits tightly into the handle. You now have an 18th century chisel handle.