Lima was born in Brasilia, Brazil in 1980. He is a dual Brazilian-Australian citizen (since 2007), and lives on the Gold Coast in Queensland. After notching up 2 wins in his home down under, he defeated the highly ranked Kenji Osawa on 22 September 2007 in Tokyo. This win puts Lima in contention for a possible title shot in 2008. Lima is currently fighting some injuries that have been haunting him and holding back his career since his last fight back in 2009 against Seiji Otsuka. The fight was a split decision in favour to the Japanese but saw Daniel Lima coming back in the third round after two rounds of a hard fought standup battle. With the introduction of a flyweight division in the UFC, Daniel Lima is now working towards his debut in that organization in a weight division that suits his frame better as he's been always in disadvantage towards bigger opponents.
Lima is the Head coach of fightclub BJJ on the Gold Coast (Miami). His teaching ability that has truly grown his reputation. Together in Brazil, he and Marcio Bittencourt combined their teams to form Fight Club Jiu-Jitsu, which became one of the strongest teams in Bahia, Brazil. From there, Marcio continued to grow and strengthen the team in Brazil while Daniel took Fight Club Jiu-Jitsu around the world. He taught in the USA, New Zealand and then finally Australia in 2003. He has expanded Fight Club Jiu-Jitsu into a diverse and fast growing organisation in various locations throughout his new home of Australia. He has led Fight Club Jiu-Jitsu to win many championships, including producing world champions of Brazilian jiu-jitsu and international level mixed martial arts fighters.