Daring was ordered on 2 February 1931 under the 1930 Naval Estimates, and was laid down at John I. Thornycroft's yard at Woolston, Southampton on 18 June 1931. She was launched on 7 April 1932 and completed on 25 November 1932, at a total cost of £225,536, excluding equipment supplied by the Admiralty, such as weapons, ammunition and wireless equipment. The ship was initially assigned to the 1st Destroyer Flotilla in the Mediterranean and made a brief deployment to the Persian Gulf and Red Sea in September - October 1933. Lord Louis Mountbatten assumed command on 29 April 1934, and Daring was given a refit at Sheerness Dockyard from 3 September to 24 October to prepare the ship for service on the China Station.

In December 1934 she sailed to join the 8th Destroyer Flotilla in the Far East and served there until the outbreak of war. Upon the ship's arrival at Singapore, Lord Mountbatten was transferred to command HMS Wishart and Commander Geoffrey Barnard assumed command.[6][7]

The ship and her sisters Duncan, Diana, and Dainty were transferred to the Mediterranean Fleet shortly before World War II began in September 1939. Daring was kept in the Red Sea for escort and patrol work until November 1939. She was overhauled in Malta from 25 November to 20 December. The ship escorted the Union-Castle Line ocean liner SS Dunnottar Castle to Belfast in early 1940 and was under repair at Portsmouth until 25 January. Daring joined the 3rd Destroyer Flotilla in Scapa Flow on 10 February 1940 for escort duties. While escorting Convoy HN12 from Norway, she was torpedoed on 18 February in position 58°39'N 01°40'W Coordinates: 58°39'N 01°40'W by U-23, under the command of Otto Kretschmer. Daring capsized and sank very quickly after having her stern blown off 157 of the ship's company were lost. The five survivors were rescued by the submarine HMS Thistle, which had witnessed the attack.