The 29-year-old winger returns to the club after two seasons with Bristol City Women in the Women’s Super League.
Daniels – who previously spent the 2018-19 campaign with the Reds in the WSL – has considerable international experience having scored seven goals in 44 appearances for the Belgian Red Flames.
Watch: Yana Daniels on LFC Women return
LFC Women manager Matt Beard, who worked with Daniels at Bristol City last season, said: “Yana’s a great player, first and foremost. She’s a little bit different to the players we have in the front positions at the moment.
“Yana can come in off the line, she’s good in the air, she’s a very technically gifted football player and she can create and score goals.
“This is a unique football club and Yana’s experience of being here before and understanding the pressures and what it means to be a Liverpool football player is something else we took into account.
“She was outstanding for me at Bristol and she’s a great person as well.”
Daniels herself had no doubts about making the return to LFC Women after a few years away.
She said: “It feels good to be back! I enjoyed my time at Bristol City and it was a tough end to the season there.
“The style Matt plays just suits me, I like it and I just feel comfortable with the way he wants to play.
“To come back here and try to help put this club where it belongs, and the philosophy of Matt, just suits me. I believe that he can achieve something big here with his ability as a manager.
“I’m looking forward to meeting all the girls. There’s still a few around from a few years ago when I was here so it feels like home and I’m excited to meet the new players.”
Daniels is the second signing of the summer window for LFC Women following the arrival of striker Leanne Kiernan.