Here's an idea. You can use modern day objects to represent the elements in the story. For example, use plush toy lions to be the lions in the den and a small action figure as Daniel. Set up a little 'den' scene in a box or on a table. Start by explaining the background of the story, like how Daniel was a faithful man. Then, as you place Daniel in the den with the lions, talk about his trust in God. Describe how the lions didn't harm him and how it was a miracle. This hands - on approach makes the story more engaging and fun.
Well, you could turn it into a song! Make up some simple lyrics about Daniel and his time in the lions' den and sing it. It would be really catchy. Or, create a puppet show. Make lion puppets and a Daniel puppet and perform the story that way. You can also tell the story in a 'choose your own adventure' style. Ask the listeners what they think Daniel should do at certain points in the story and then continue based on their answers.
One fun way is to act it out like a play. Get some friends or family to be the different characters. Another way could be to make a comic strip of the story. You can draw pictures of Daniel in the den with the lions and use speech bubbles to tell what's happening. Also, you can tell it as a bedtime story but use different voices for each character to make it more interesting.