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.
Daniel was a man who was very faithful to his God. He was living in a foreign land under a different king. But he didn't abandon his religious practices even when it was against the king's orders.
You could create a stop - motion animation of the story. It takes some time and effort, but it's really cool. Take pictures of small figures or models in different positions to show the sequence of events in the story. Also, a storyboard is a great way to present it. Draw out each important part of the story on a big board and then walk people through it, adding details and explanations as you go.