A friend says the singer, who appeared on the show in 2008, died earlier this month but a cause of death is yet to be revealed.
Ariel, whose real name is Amy Burdett, had one of the most memorable auditions in the show's history.
As she arrived to present herself to the judges she ripped her label on the floor, saying she was a "human being, not a number".
Ariel also told Cheryl, who was an X Factor judge at the time, she was "stupid" after she got given four nos.
She sported bright blonde dreadlocks and dark black eye makeup in the infamous clip.
Ariel told them she was a "specialist and not a generalist" and worked as a "holistic vocal coach".
Her song was an "academic construction", she claimed.
After failing to make it through to the next round, she told the judges to "shove a bit of metal right up their a**".
She had changed her name to Arabella Starchild after her famous audition.
The friend also posted a picture of Ariel on social media, asking them to get in touch with her brother about funeral arrangements.
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