Konstantin Ivanovich Arsenyev was born in the village of Mirokhanovo in the Kostroma province to a family of Orthodox priests. In 1799 and 1806, he studied at the seminary, after which he moved to St. Petersburg. In 1810, he graduated from the Pedagogical Institute and remained there to teach Latin and geography.

In November 1812, Arsenyev arrived in Petrozavodsk with teachers and students from the institute, evacuated from the capital due to the Patriotic War. There, he studied the history of the Olonets mining factories.

In 1820, Arsenyev became a member of the St. Petersburg lodge 'Chosen of Michael.' In 1819, he was appointed adjunct professor of geography and statistics at St. Petersburg University, but two years later, he was dismissed due to his liberal views. Runich, reviewing Arsenyev's lectures, found 'harmful places' in them and suspended their delivery. Arsenyev faced serious consequences, but he was saved by the patronage of Grand Duke Nikolai Pavlovich. He continued to teach at the Main Engineering and Mikhail Artillery Schools and dedicated his 'History of the Peoples and Republics of Ancient Greece' to the emperor.

In 1824 and 1828, Arsenyev was the editor of the Commission for the Compilation of Laws. From 1828 to 1837, he taught statistics, geography, and history to the future Tsar Alexander II, accompanied him on a trip across Russia, and advocated for A. I. Herzen. During this time, Arsenyev also managed the statistical committee of the Ministry of Internal Affairs and published the work 'Statistical Essays on Russia.' He was a secret advisor and taught at the Reformed School.

In 1845, Arsenyev became one of the founders of the Russian Geographical Society. In 1853, he retired. In June 1864, being seriously ill, he moved to Petrozavodsk to live with his elder son, Y. K. Arsenyev, who was the Olonets governor, and lived with him until his death on November 29, 1865. He was buried in Petrozavodsk at the Cross Exaltation Cathedral.