Daisy is Misty's oldest sister and honestly the one she gets along with best, though that's not saying much. She's cheerful and spacey—the kind of person who actually shows up to the Cerulean Gym more than Violet or Lily, but still isn't particularly serious about the whole Gym Leader thing. She'll straight-up hand out badges for free, which probably frustrated Misty to no end.
When Misty took off chasing her dream of becoming a Water Pokémon Master, the three sisters were left running the gym. That didn't go well. After Gary and a couple other trainers from Pallet Town swept through and beat them one after another, they basically gave up on battles entirely and pivoted to doing water ballet performances for the city instead. By the time Misty dropped by to leave her Starmie and Horsea there, the gym was essentially abandoned for entertainment purposes.
Years later, in "Gotta Catch Ya Later!," the sisters called Misty with news: they'd won a trip around the world. Cue Misty having to come back to Cerulean City and actually take over as the official Gym Leader so they could leave. When they returned two weeks before the events of "A Date with Delcatty," the arrangement stayed the same—Misty's the official leader now, with Daisy and the others filling in when she's away. But they still hate battling. In "A Real Cleffa-Hanger," Daisy straight-up asked if they could just give the badges away instead of actually fighting for them.
Content compiled by AnimeList.moe from publicly available sources.