Daniel A. Handy was born on August 2, 1843, in Pawtucket, Rhode Island, to John and Sarah Handy. By 1860, he was living in Providence, Rhode Island, and working as a farmer. He enlisted in the Union army on June 6, 1861, and mustered in as a private in Company F of the 2nd Rhode Island Infantry later that day. The regiment took part in the First Battle of Bull Run, the Battle of Seven Pines, the Seven Days Battles, the Battle of Fredericksburg, the Battle of Gettysburg, and the Battle of the Wilderness. He was wounded on May 6, 1864, in the Battle of the Wilderness, and he spent the following year recovering before mustering out on July 8, 1865. He applied for a federal pension in August 1865 and secured one soon afterward.
Handy married Jemima A. Raworth in Boston, Massachusetts, on February 18, 1864, during a furlough. They had at least two children: Rodolpho, born around 1868; and Frederick, born around 1879. They lived in Pawtucket after the war, and Handy worked as a farmer. By 1870, they owned $500 of personal property. They moved to Ashland, Massachusetts, sometime in the 1870s. He died in Massachusetts in 1888.