Native American tribes have a rich culture of mask making and storytelling using these masks. Is it possible that these brought upon the advent of "Masquerade Balls"? If not, how did they start.
This is not likely. The OED records one of the earliest mentions in Engish of such an event:
The kyng with a .xi. other were disguised, after the maner of Italie, called a maske, a thyng not seen afore in Englande..after thei daunced and commoned together, as the fashion of the Maske is, thei tooke their leaue and departed.
Written in 1548, this bit from a text on King Henry VIII describes an event in 1512. Though supposedly this was the first such dance in England, it did have a recognized tradition in Italy, and later, perhaps more famously, the courts of France. It certainly predates Columbus' voyages, and, if not, significant contact with Native North Americans. The European masquerade draws from the Catholic Carnival festivities: masks and storytelling are used together in far too many cultures to assume any connection between any two.