Daniels was born in Detroit, Michigan in 1907. He attended the University of Michigan where he received nine varsity letters in football, basketball and baseball. He won All-Big Ten and All-America honors in basketball and was the leading scorer for the 1930-1931 and 1931-32 Michigan basketball teams with 152 and 148 points, respectively. He also held the second base position for the baseball team, and played at the right end and halfback positions for the football teams from 1929 to 1931. After graduating from Michigan in 1932, Daniels became a teacher and coach at a secondary school in Hillsdale, Michigan.