Daly was born and raised in Pittsburgh, Pennsylvania. He first became involved in improv performing in Pittsburgh when he was 16 at a show called "Friday Night Improvs" at the University of Pittsburgh and continued performing while attending the University of North Carolina School of the Arts.
Daly has been a regular performer at the Upright Citizens Brigade Theatre (UCB) for over ten years where he performed in the improv group "Mother". He continues to perform at the theater's Los Angeles division. Some of his notable work at UCB was performing in the sketch groups such as Mother and Mr. A$$ and creating characters such as Sappity Tappity and Bill Cosby-Bukowski. Daly has appeared in films such as The Secret Life of Walter Mitty, Mystery Team, Bride Wars, Blackballed: The Bobby Dukes Story, and College Road Trip. He starred as Hobbes in the Amazon Studios comedy series Betas in 2013 and was also a recurring sketch performer and writer/producer on Comedy Central's Kroll Show.
Daly has had recurring roles on The Life & Times of Tim, Happy Endings, NTSF:SD:SUV::, Drunk History, Family Guy, and IFC's Comedy Bang! Bang!, as well as making guest appearances on comedy programs such as Parks and Recreation (appearing only in the first episode and last episode, six years apart), The Inbetweeners, Key & Peele, Bob's Burgers, Nick Swardson's Pretend Time, and Mr. Neighbor's House. He has also written for the MTV sketch series Human Giant and the Scott Aukerman & B. J. Porter created sketch pilot The Right Now! Show.[citation needed]

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