According to Boyle's Law, which states that the pressure of a gas is inversely proportional to its volume when temperature is held constant, as the pressure on the balloon decreases, its volume will increase.
In the case of the floating balloon, as it rises, the atmospheric pressure surrounding it decreases. Consequently, the gas inside the balloon will expand, causing the volume of the balloon to increase. This is why a balloon appears to swell as it ascends to higher altitudes where the air pressure is lower.