Daly attended Boston Latin School and Harvard University, where he was a member of ΑΔΦ, the Fly Club, and the Hasty Pudding Club and graduated in 1901 with an Artium Baccalaureus. He also graduated from West Point in 1905. His military record as of 1921 was: Captain Field Artillery, Regular Army, when United States entered the war; attached to 338th Field Artillery, 88th Division, Camp Dodge, Iowa; promoted temporary major August 5, 1917; attached to 29th Field Artillery; detailed to School of Fire, Fort Sill, Oklahoma, as instructor; promoted temporary lieutenant colonel June 25, 1918; promoted temporary colonel October 24; demoted Regular Army grade captain Field Artillery August 20, 1919; detailed to U.S. Military Academy, West Point, N.Y., as instructor; promoted major 1920; in service