Before His Birth
Daniel is the son of Hippolyta “Lyta” Hall and Hector Hall both of them children of golden age superheroes. Hector was killed just after Lyta found out she was pregnant. Instead of going into the afterlife Hector was brought into the dreaming along with Lyta and their unborn child Daniel by two errant nightmares Glob and Brute. Hector and Lyta remained in the dreaming for two years and as a result Daniel was being incubated in the land of dreams. While there Glob and Brute convinced Hector that he was the new lord of dreams. When the real dream king Morpheus returned he dispatched Hector to the afterlife and told Lyta that he would one day come and take Daniel as he had been incubated in the Dreaming and in his eyes belonged to him. Lyta swore she would never let this happen.
After His Birth
Lyta gave birth to Daniel and cared for him dearly. She was so frightened by the thought that Dream would return and take Daniel that she never left his side. In his dreams Daniel would go into the Dreaming were he was frequently regaled by stories by its residents such as Cain, Abel, Eve and Matthew. Meanwhile Dream had dispatched the Corinthian and Matthew to rescue Daniel which they do and take him back to the dreaming. Lyta possessed by the Furies begins to destroy the Dreaming.
Daniel was kidnapped by Loki and Robin Goodfellow on the only night in three years that Lyta left him to go to a job interview. Loki and Robin faked Daniel's death. Lyta suffered a nervous breakdown as a result and believing Dream was the cause of losing Daniel and Hector made a deal with Furies to kill Dream.
Daniel the Dream King
With no other option Dream realizes the only way to stop the Furies is his own destruction. Morpheus transfers all his power to the Eagle stone and says goodbye to Daniel. After Morpheus dies, Daniel is seen playing with the Eagle stone and then transforms into Dreams “new point of view”.
Daniel and His Family
At “his” wake Daniel encounters his mother for the first time since his abduction and transformation. He claims that nothing of his life as Daniel survived the burning however he offers her his protection and claims no one will harm her again. The next time he meets his mother she is again possessed by Furies this time however she is in battle with the Titan Cronus. After defeating Cronus while still possessed she notes that the humanity in her recognizes the humanity that's still in him. After the Spectre's rampage on the world of magic during Infinite Crisis both Lyta and Hector Hall, Daniel's father are banished to a frozen level of Hell. Daniel appears and offers them salvation in the Dreaming if they promise to never return to earth. This gives the indication that perhaps there is something of Daniel the infant in the new Dream.
Daniel is shown to have quit his role as the ruler of The Dreaming to point that he would remove Matthew Cable's memories of finding him in his search for Daniel, leaving the Dreaming and it's inhabitants such as Lucien to start fading away.