Information available about Daniels is limited and vague. His application for a Social Security number lists his birth date as April 12, 1899, and his birthplace as Arizona. At various times he falsely claimed to be Cherokee and Creek.

Although featured in a number of films, Daniels was uncredited in some films, such as Gun Smoke (1935), a film about a ranch defending itself from a flood of sheep. He also appeared in the first two parts of the serial Custer's Last Stand (1936), again uncredited.

After working for some time as a stuntman and in bit parts, it was Daniels' portrayal of the character Tonto in the serial The Lone Ranger (1938) that was to be his legacy. This is perhaps where he gained the most recognition as a character actor." The same year he had a small villain-like role in the first part of Flaming Frontiers, a 15-part cliffhanger about murder and double cross. The following year Thundercloud reprised his role as the Lone Ranger’s sidekick in The Lone Ranger Rides Again.

Daniels worked many jobs before becoming a stuntman, as a Cowboy on cattle ranches, as a miner, a rodeo performer, and tour guide, before he went to Hollywood to try his luck in acting. From there he graduated to character actor status. His title "Chief" was a Hollywood invention - a stage name. He had the title role in Geronimo (1939) and played Tonto in both Republic Lone Ranger serials, The Lone Ranger (1938) and The Lone Ranger Rides Again (1939).

Throughout the 1940s Daniels continued to work as a character actor, maintaining the Chief Thundercloud persona. In most of the films in which he was featured, he played an antagonist opposing the white protagonist. For Example, in the film "Young Buffalo Bill" (1940) he played Akuna, a renegade Native American Chief who commits murder while working as a hired hand. In the film Renegade Girl (1946), he played the main villain, Chief Whitecloud, a vengeful antagonist with a vendetta against the protagonist's family.

According to the Los Angeles Daily News, Daniels was fined $200 and sentenced to four years of probation in 1951 after he pleaded guilty to violating the Corporate Security Act. He was told to make restitution of $5625 to his victims after he had sold them shares in films without a permit. During his final years, he worked with other western actors, performing in live shows at the Corriganville Movie Ranch, now the Corriganville Regional Park, near Simi Valley, California.

Victor Daniels died at age 56 following surgery for stomach cancer, in Ventura County, California, on November 30, 1955. He was survived by his wife, Frances Delmar, a former singer, and their two children, White Eagle and Lone Star. He was buried in Forest Lawn Memorial Park in Glendale, Los Angeles. His last film role was in the John Wayne film "The Searchers" (1956), which was released after his death.