United manager Peter Houston subsequently named Daly as club captain for season 2010–11. Daly then scored his first goal of the season, on the opening game of the season, in a 1–1 draw against St Mirren. Daly would make his European debut, in the qualification round, as Dundee United lose 1–0 against Greek side AEK Athens; then in the second leg, Daly scored his first European goal after coming on as a substitute with the game finishing in a 1–1 draw. Unfortunately this wasn't enough as Dundee United exited the competition losing 2-1 on aggregate. After the match, Daly said his goal couldn't save the club's European campaign, believing the club should have done better. However, during the season, Daly would suffer injuries, such as head and Hernia. But he managed to overcome those injuries and on 1 May 2011, Daly received a red card after a second bookable offence, as Dundee United lost 4–1 against Celtic. The next game, on 7 May 2011, Daly, then, scored his hat-trick of his Dundee United career, as they beat Motherwwll 4–0. Despite the injuries, Daly scored twelve goals in all competitions.