Pallaoro was born Albine Hunner in Linz. She later married. On September 15, 1944, she reported to Mauthausen-Gusen concentration camp to undergo guard training. Eventually she worked as an Aufseherin in the camp kitchen, overseeing several women prisoners there.
Some time later Albine was one of several female overseers who accompanied a transport of women to the Ravensbruck camp near Berlin. She stayed there until the Soviets neared the camp. Albine has never been charged with being a member of an SS affiliate, which was declared to be a criminal organization after the war.