Elliott turned a lap at 192.872 mph to just edge Earnhardt's speed of 192.864. Elliott and Earnhardt gave Hendrick Motorsports and Chevrolet a 1-2 front row for NASCAR's biggest race.
Elliott, 21, is the son of Hall of Fame driver and two-time Daytona 500 champion Bill Elliott. In the No. 24 Chevy, Chase Elliott became the youngest Daytona 500 pole winner a year ago and proved Sunday that starting first last season was no fluke.
Elliott also made it three straight years for the No. 24 on the pole. Jeff Gordon won the pole in 2015 in his final season before he retired and turned the car over to Elliott.
The rest of the field will be set Thursday in the two qualifying races.
Earnhardt had the speed in his triumphant return to NASCAR after he missed the second half of last season with a concussion. Elliott will lead the field to green and try to avoid the problems that plagued him last season.
Elliott's run at a Daytona 500 victory last season ended in the grass just 19 laps into the race. The front end of his car lifted off the ground, and the rough ride caused enough damage that his car had to be towed to the garage.
Until the wreck, Elliott was the star of Speedweeks. He followed the pole with a win in the second-tier Xfinity Series race.
He's back out front again and expecting a better finish.
"I hope we can just try to get to the end of the 500 next," Elliott said. "We've obviously got to get through the Duels first. But just making it to the end and having yourself in position, obviously we'd love to have a shot to win this thing. It would be great, and I think we have a car that can do it."
Elliott's speed earned team owner Rick Hendrick his 11th overall pole in the Daytona 500. Hendrick Motorsports swept the front row for the fifth time.
"My boss man is happy," Earnhardt said. "I just talked to him on the phone, and he's got to be thrilled with having his cars up front."
Earnhardt and Elliott are both sons of NASCAR Hall of Fame drivers.
Earnhardt's sensational return from a lengthy layoff should give the sport the feel-good boost it needed heading into next Sunday's race. Earnhardt, long NASCAR's most popular driver, missed the final 18 races last year with nausea, vision and balance issues after a concussion -- at least the fifth of his career -- suffered in a June wreck. He was as sharp as ever in the No. 88 Chevrolet heading into his first race since last July.
Earnhardt, 42, got married in the offseason, wants a family and said over the weekend that he would a like a "couple of months" to see how he feels before deciding to sign a contract extension.
Earnhardt starts second in the first NASCAR race under the Monster Energy sponsorship banner, and the Daytona 500 is the first race under the new format that divides the race into segments.
NASCAR ditched its Daytona qualifying format via knockout groupfor single cars making one qualifying lap.
After 42 drivers had a scheduled turn, the 12 fastest advanced to the second round. The two fastest drivers in the second round set the front row, and 36 drivers were guaranteed a spot because of the charter system.
Other things to know about qualifying:
WALTRIP FINALE: Michael Waltrip failed to advance to the second qualifyingroundin his 30th and final Daytona 500 start. He said the race will be his last in NASCAR. Waltrip, a two-time Daytona 500 winner, will drive the No. 15 Toyota for Premium Motorsports. Premium bought a team charter from the defunct HScott Motorsports that guaranteed the 51-year-old Waltrip a spot on the grid.
SUAREZ STRUGGLE: Daniel Suarezdid not advance to the second qualifyinground in his first career Cup race. Suarez, the only non-American in the Monster Energy Cup Series, has become a sensation in his native Mexico. He became NASCAR's first foreign-born series champion with an Xfinity Series title last season, and Joe Gibbs Racing promoted him to the No. 19 Toyota when Carl Edwards abruptly retired.