Daniel explained to them about the ring and the armor, what they were used for, and what abilities they had. As expected, at first they couldn't believe it.
"Do such good things really exist?" — That's when Daniel realized that these two girls' worldview was a bit narrow and needed some expanding.
Still, until they could enter the Celestial Domain, there was nothing that could be done — not that it mattered much. It wasn't like it would hurt them or anything like that.
He helped both of them a little so they could get used to their gifts and taught them how to use them and how they were meant to be used.
Of course, this was mostly for Tiana — after all, Alice's gift was just an armor and didn't have any special method of use or anything like that.
After they got used to their gifts, they challenged Daniel again, thinking they could defeat him now.