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Daniels was born Erin Cohen in St. Louis, Missouri, where she grew up. Her father was an architect and her mother was a clinical social worker. She grew up in a Jewish family: her mother co-founded the Central Reform Congregation in St. Louis and her grandmother received an award from the National Conference of Christians and Jews. She attended Clayton High School and Vassar College, graduating from the latter in 1995 after majoring in art. After Vassar she moved to New York City, studying with William Esper, a protégé of Sanford Meisner and getting some Off Broadway roles; she then moved to Los Angeles for a part on the short-lived TV series Action. In 2002, the St. Louis Film Festival awarded Daniels the Emerging Star Award. She appeared in One Hour Photo, Wheelmen, and House of 1000 Corpses before becoming a cast member of Showtime's The L Word. Her depiction of Dana Fairbanks on that show prompted an anonymous donation of a million dollars to the Dr. Susan Love Research Foundation, an organization that promotes and funds breast cancer intraductal research. Daniels has also appeared in the TV shows Action, Jericho, Dexter, Big Shots, Justice, and Swingtown.
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