The 17-year-old posted a message via the Tangerines' website on Monday, stating that he has been inspired by the "courage" of fellow footballers Josh Cavallo and Matt Morton, as well as Olympic gold-medal winning diver Tom Daley.
Daniels has been in prolific form for Blackpool's under-19 team, scoring 30 goals this season, and he recently made his first team debut as a substitute in a Championship game against Peterborough United.
The youngster is the first current male professional footballer in Great Britain to publicly come out as gay and hopes by doing so, he will be a role model.
"Off the pitch I've been hiding the real me and who I really am," Daniels wrote. "I've known my whole life that I'm gay, and I now feel that I'm ready to come out and be myself.
"It's a step into the unknown being one of the first footballers in this country to reveal my sexuality, but I've been inspired by Josh Cavallo, Matt Morton and athletes from other sports, like Tom Daley, to have the courage and determination to drive change.
"In reaching this point, I've had some of the best support and advice from my family, my club, my agent and Stonewall, who have all been incredibly pro-active in putting my interests and welfare first.
"I have also confided in my team-mates in the youth team here at Blackpool, and they too have embraced the news and supported my decision to open up and tell people.
"I've hated lying my whole life and feeling the need to change to fit in. I want to be a role model myself by doing this.
"There are people out there in the same space as me that may not feel comfortable revealing their sexuality. I just want to tell them that you don't have to change who you are, or how you should be, just to fit in.
"You being you, and being happy, is what matters most."
Derby went with an attacking formation but the first clear chance fell to Blackpool in the 29th minute, with George Byers scuffing a shot wide from 15 yards.
It brought an instant response from Nathaniel Mendez-Laing, whose curling shot was touched behind by Daniel Grimshaw and the corner was almost forced in at the near post.
But Grimshaw could do nothing in the 40th minute when a cross was half cleared to Adams, who scored with a first-time shot from the edge of the area.
Derby should have added a second in the 55th minute when Mendez-Laing put Conor Washington through on the right but he failed to beat Grimshaw.
Blackpool almost took advantage in the 71st minute through a Sonny Carey free-kick which Rams keeper Joe Wildsmith clawed away.
There was another late scare for Derby when Kyle Joseph twice had goalbound shots blocked by Curtis Nelson and Eiran Cashin.
Sean Dyche's Toffees have lost their past two Premier League matches despite leading 2-0 in each, and they let slip another lead on Tuesday.
Abdoulaye Doucoure's opener was cancelled out by Saints' Taylor Harwood-Bellis, with a 1-1 draw taking the third-round tie to penalties at Goodison Park.
Southampton, like Everton, are pointless in the league after Cameron Archer's spot-kick miss in their latest defeat at home to United on Saturday proved costly.
But this time Saints succeeded from 12 yards, advancing after a 6-5 shoot-out win, with Ashley Young the only man to fail from the spot when Alex McCarthy saved the final kick.
That was one of three shoot-outs among Tuesday's cup matches, with Preston North End remarkably winning a marathon contest against Fulham.
Following another 1-1 draw, Preston were 16-15 victors on penalties as Timothy Castagne blazed the decisive effort over the crossbar after 17 attempts apiece.
Stoke City and Fleetwood Town also drew 1-1, before the Potters triumphed.
Elsewhere, Eberechi Eze netted the winner against former club Queens Park Rangers, with Eddie Nketiah also on target for the first time for Crystal Palace in a 2-1 victory.
Brentford came from behind to beat Leyton Orient 3-1, while Sheffield United defeated former boss Steve Bruce and Blackpool 1-0.
