We have
$$
\sqrt{1+f'^2}-\sqrt{1+g'^2}=\frac{f'^2-g'^2}{\sqrt{1+f'^2}+\sqrt{1+g'^2}}.
$$
So
$$
|\sqrt{1+f'^2(x)}-\sqrt{1+g'^2(x)}|\leq\frac{|f'^2(x)-g'^2(x)|}{2}\leq\frac{|f'(x)-g'(x)|(|f'(x)|+|g'(x)|)}{2}
$$
for all $x\in(a,b)$.
Now fix $f$ and take $g$ such that $\|g'-f'\|_\infty\leq 1$. Then $\|g'\|_\infty\leq 1+\|f'\|_\infty$, so
$$
|\sqrt{1+f'^2(x)}-\sqrt{1+g'^2(x)}|\leq\frac{(1+2\|f'\|_\infty)}{2}\|f'-g'\|_\infty
$$
for all $x\in(a,b)$.
Denote
$$
I(f):=\int_a^b\sqrt{1+f'^2(x)}dx
$$
the arclength function.
We have, with $f$ and $g$ as above,
$$
|I(f)-I(g)|\leq \frac{(b-a)(1+2\|f'\|_\infty)}{2}\|f'-g'\|_\infty.
$$
So $I(f)$ is locally Lipschitz with respect to $\|f'\|_\infty$. A fortiori, with respect to the usual $C^1$ norm $\|f\|_\infty+\|f'\|_\infty$.
Hence it is continuous at $f$ for all $f$ in $C^1$.
Let $f,g$ be two $C^1$ functions on $[a,b]$.
We have $$ \sqrt{1+f'^2}-\sqrt{1+g'^2}=\frac{f'^2-g'^2}{\sqrt{1+f'^2}+\sqrt{1+g'^2}}. $$ So $$ |\sqrt{1+f'^2(x)}-\sqrt{1+g'^2(x)}|\leq\frac{|f'^2(x)-g'^2(x)|}{2}\leq\frac{|f'(x)-g'(x)|(|f'(x)|+|g'(x)|)}{2} $$ for all $x\in(a,b)$.
Now fix $f$ and take $g$ such that $\|g'-f'\|_\infty\leq 1$. Then $\|g'\|_\infty\leq 1+\|f'\|_\infty$, so $$ |\sqrt{1+f'^2(x)}-\sqrt{1+g'^2(x)}|\leq\frac{(1+2\|f'\|_\infty)}{2}\|f'-g'\|_\infty $$ for all $x\in(a,b)$.
Denote $$ I(f):=\int_a^b\sqrt{1+f'^2(x)}dx $$ the arclength function.
We have, with $f$ and $g$ as above, $$ |I(f)-I(g)|\leq \frac{(b-a)(1+2\|f'\|_\infty)}{2}\|f'-g'\|_\infty. $$
So $I(f)$ is locally Lipschitz with respect to $\|f'\|_\infty$. A fortiori, with respect to the usual $C^1$ norm $\|f\|_\infty+\|f'\|_\infty$.
Hence it is continuous at $f$ for all $f$ in $C^1$.