Daly features in one of the most iconic photographs from Bloody Sunday in 1972.
He is pictured waving a bloodied handkerchief as a group of men attempt to carry 16 year old Jackie Duddy to safety.
The teenager was one of 14 people shot dead by British troops at a civil rights march in the city.
Archbishop Eamon Martin has paid tribute to Bishop Daly's work in Derry during the troubles.
Meanwhile, the Minister for Foreign Affairs has also paid tribute to Bishop Daly.
Charlie Flanagan has described him as a man of peace who will be greatly missed by the people of Derry.
