Daedalus was the master smith of the Dragon Lords. Little is known of him except through his work, preserved as written by his disciples in the recipe book Secrets of the Master and in machinery found in the Palace of the Dead. The presence of Palace of the Dead guides in Secrets of the Master, along with his name, may be an indication that he designed or built the Palace.
Daedalus is the name of a character in Greek mythology. Daedalus was said to be a skilled craftsman, responsible for the creation of the Cretian Labyrinth--likely the reason his name was chosen for the smith.
He is more commonly recognized for his role in the myth of Icarus. He was Icarus' father, and built his son wings--held together by wax--that melted as Icarus flew too close to the sun.