Daily was born in Des Moines, Iowa, on August 30, 1927, and launched his television career as a floor manager for NBC affiliate WMAQ in Chicago, before moving on to acting with guest spots on Bewitched, My Mother the Car and The Farmer's Daughter.
Daily's big break came when he was cast as an astronaut — and once accidental master of the titular Jeannie — on I Dream of Jeannie alongside Barbara Eden and Larry Hagman. After I Dream of Jeannie ended in 1970, it was only a few years later that Daily found himself playing another zany airman as Howard Borden on The Bob Newhart Show.
A staple of '70s and '80s guest spots, Dailey appeared on such fare as The Love Boat and Love, American Style before landing another regular spot as psychiatrist Larry Dykstra on ALF. Dailey also appeared in a number of I Dream of Jeannie TV movies.
Dailey is survived by a son, J. Patrick Dailey, who works as a key grip in motion pictures.