Hollins made almost 600 appearances for the west London side as a player between 1963 and 1975, before a three-year stint as boss from 1985.
He also had an impressive spell at Arsenal and played for England against Spain in a friendly at Wembley in 1967, the year after they'd won the World Cup.
Chelsea board member Daniel Finkelstein paid tribute on Wednesday, saying: "He was a hero to the fans of this club.
"He was at the heart of one of Chelsea's greatest teams and, as well as contributing to its trophy success, he expressed its spirit."
After spells at Queens Park Rangers and Arsenal, Hollins returned to Stamford Bridge in 1983 for the final year of his playing career and helped the club win promotion back to the old first division after a five-year absence, replacing John Neal as boss a year later.
The team mounted a credible title challenge during in 1985-86 season, his first as a manager, and topped the table in February before falling away after a poor finish and ending up sixth.
He went on to take a coaching role at QPR, briefly taking over as caretaker manager in 1997, before stints in the Football League at Swansea, Rochdale and Stockport. His last managerial role was with Weymouth in 2008.
His appearance total of 592 in all competitions placed him fifth in Chelsea's all-time and he was appointed an MBE for services to football in 1982.
Speaking on behalf of the family, his son Chris Hollins said: "John was always so modest about the role he played in Chelsea's history.
"He was only 15 when he signed for the club and went on to win trophies in those incredible sides of the '60s and '70s.
"He had so many stories, but he always told us he just loved running out at the Bridge and wearing that famous blue shirt. We will miss him as a husband, a father and grandfather and will always be proud of what he achieved in the game."
Arsenal, for whom Hollins played 173 times across four years and won the club's player of the year award in 1981-82, also said: "We are deeply saddened to learn of the passing of John Hollins.Â
"Our Player of the Year in 1981/82, John was also a European Cup Winners' Cup finalist in 1980. John scored 13 times in 173 games with us. Rest in peace."