The 17-year-old has been met with an outpouring of support since his decision to go public with his sexuality on Monday, 16 May.
The Liverpool Manager said watching the interview with Daniels made him feel proud of the young player after watching his side win 2-1 at Southhampton.
He said: "I loved how he really delivered his message. He is right in what he said. He didn't want to hide any more. Good. That is exactly the right way to do it.
"I don't know him but I'm really proud of him. It's an important step. We live in 2022. That we have to make such a big thing of it is crazy, but we're getting there.
"It's a good start and now I hope others will follow and can do that as well. It would be absolutely outstanding.
"I'm really happy for him. He's exactly where he wants to be. Top class."
Jake Daniels, a forward for Blackpool FC, made the announcement on Sky News, saying he wanted to do so to "break the stigma".
He said he had been hiding who he really is and "now feel that I’m ready to come out and be myself."
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