Daly began his career at the Clarets before impressing for Droylsden.
Such form led to a move to South Shields, but injuries restricted him to just 21 appearances for the Mariners.
Since his departure from the club last summer, Daly has enjoyed spells at Curzon Ashton, Matlock Town and Bamber Bridge.
His arrival at Ewen Fields comes at a good time for the in-form Tigers, who will go in search of a fourth successive win in all competitions this weekend.
On the signing of Daly, Hyde United manager Nick Spooner said: ”Luke is a gifted footballer and he gives us another good option in our midfield."
Photo credit: South Shields
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