Daily React Hooks` are a series of custom React hooks that connect to Daily's JavaScript API, simplifying code and improving performance in real-time video and audio applications. They offer advantages such as simplified code, reduced component re-renders, abstracted error handling, and state management, allowing developers to focus on building engaging apps. The library leverages React's internal state management tools and connects to Daily's JavaScript API, making it easier to debug and maintain. By using `Daily React Hooks`, developers can convert their existing codebase from daily-js and optimize performance, reducing development cycles and improving overall app performance.