Daniel's father, Hector, was a ghost revived by the two nightmares Brute and Glob, in Morpheus's absence; whereafter Lyta and Hector's ghost lived in the dreams of a child, Jed Walker, for two years.
Daniel was named in accordance with Neil Gaiman's decision to give the Endless names or titles beginning with the letter 'D', and after the Biblical prophet who interpreted dreams.