When an army faction in July 2016 tried to take over the Turkish government "all hell broke loose" until it was put down. The city is peaceful then suddenly "all hell broke out/loose" There is chaos for a while.
Your best friend asks why you have a black eye you answer. When my girlfriend/wife saw me kissing another girl then "all hell broke loose." You were in hell of a lot of trouble from her. :)
In the circus the tiger escaped from his cage into the audience and "all hell broke loose" as the audience ran for their lives.
Anything that causes a huge disruption, commotion or chaos can be describing the idiom 'all hell broke loose.' Just imagine if all the people and demons in hell got loose into the world the chaos that might cause.
Yes its natural stuff in context.