While I have never been to a DAILY SHOW taping, it is general practice for all TV show tapings to overbook their live studio audiences by as high as 30% over capacity, pending on the week.
For any show, there is no definite time you should arrive as it is different day-to-day, especially if it is a talk show with guests.
For a taping of THE VIEW, I have gone several times without having tickets and just joining the standby line. I have gotten there as early as 5am for an 11am taping. For THE LATE SHOW WITH DAVID LETTERMAN I had tickets for the 4pm taping and got there at 12pm where a line was already about 50 people in line (the guest was Tom Cruise).
"The Spectacle has, indeed, an emotional attraction of its own, but, of all the parts, it is the least artistic, and connected least with the art of poetry. For the power of Tragedy, we may be sure, is felt even apart from representation and actors. Besides, the production of spectacular effects depends more on the art of the stage machinist than on that of the poet."
--Aristotle