Valley or meadow
Daylee is a modern American invention, likely created by combining the word 'day' with the popular 'lee' suffix, or as a phonetic variation of the English surname Daley. It shares the pastoral meaning of 'meadow' or 'valley' found in many names ending in -lee or -leigh.
Less common today
Daylee isn't in the latest US Top 1000. It last peaked at #5,208 in 2010.
US births per 5-year period, 1990βpresent (SSA data).