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Butler is also an established stage actor. In 2018 he played Lenin in the Broadway revival of Tom Stoppard's Travesties. Other recent appearances include as Truman Capote in American Repertory Theatre's 2017 production of Rob Roth's Warhol/Capote and Jack in the 2013 Off-Broadway production of Conor McPherson's The Weir.

In 2006, Butler produced and starred in the faux documentary Karl Rove, I Love You (which he also co-wrote and co-directed). Other film work includes roles in Silence of the Lambs and Longtime Companion.

In 1998, Butler played the role of NSA Director Admiral Shaffer in Enemy of the State.

Butler lives in Vermont and is married to producer Richard Waterhouse. He came out to his family when he was in his early 20s. He wrote a one-man show, The Only Thing Worse You Could Have Told Me, which opened in Los Angeles in 1994 and also played in San Francisco and off-Broadway in New York. It was Butler's public coming out. The play had ten characters "just processing what gay means". He was nominated for the 1995 Drama Desk Award for Outstanding One-Person Show.

Butler is best known for his role as Bob "Bulldog" Briscoe in the NBC sitcom Frasier, appearing in every season but one between 1993 and 2004. The character was a volatile, boorish, intensely macho sports presenter who hosted the show which followed Frasier's daily broadcast at the radio station KACL.

He is also one of two actors to play two different characters within the Hannibal Lecter franchise. In 1986 he played the role of Jimmy Price, a technician in the film Manhunter, then 5 years later playing the role of Roden in 1991's The Silence of The Lambs. The other actor is Frankie Faison.

Butler was born in Huntington, Indiana, and raised in Fort Wayne, the son of Shirley, a housewife, and Andrew Butler, a pharmacist. While a drama student at Indiana University in 1975, he received the Irene Ryan Acting Scholarship, sponsored by the Kennedy Center. From 1976–78 he trained at the American Conservatory Theatre in San Francisco.

Daniel Eugene Butler (born December 2, 1954) is an American actor and voice actor known for his role as Bob "Bulldog" Briscoe on the TV series Frasier.