Balloons are not a crafting item in Minecraft, although the glow ink sac item may be used to make beautiful balloons. Collect the glow ink sac from a luminous squid in a body of water at night before using it. Then, in a crafting table, blend it with any hue of dye to make a luminous dye. Use this dye to produce a luminous balloon by dying a piece of leather armor.
How to make a balloon in Minecraft?