Daly, 24, has emerged as a key player for England this season, scoring the winning try in Saturday's 21-16 victory over Wales in the Six Nations.
"He's got the ability," Cipriani told the Rugby Union Weekly podcast.
"He's extremely quick, with a good skill-set, and his left foot is underrated," added the fly-half.
The pair went to school together in Croydon, and Cipriani says Daly "was one of the reasons" why he chose to rejoin Wasps from Sale last year.
Cipriani also feels Daly's ascension to the international arena shows skill is more valuable than size in the modern game.
"The size myth is a thing of the past now," added Cipriani, who made the last of his 14 appearances for England in August 2015.
"All big men are having to actually learn to use their skills. Players like Elliot and George Ford aren't blessed with size but have footballing ability."
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Despite not being part of Eddie Jones' England set-up, Cipriani has been mentioned by Lions boss Warren Gatland as a possible wildcard for the squad to tour New Zealand.
The 29-year-old was influential as Wasps drew 35-35 with Exeter on Sunday to extend their lead at the top of the Premiership, and Cipriani believes winning silverware with Wasps could put him in the frame for selection.
"I've got an opportunity to do everything I can to make sure Wasps get into the big games at the end of the season," Cipriani said.
"If by playing well in those games Warren feels I could unlock those defences [in New Zealand], then it would be a dream come true and would make my career."
England back Elliot Daly has the potential to tour with the British and Irish Lions in the summer, according to his Wasps team-mate Danny Cipriani.