The 23-year-old has 45 points (19 goals, 26 assists) in 130 career NHL games with the Columbus Blue Jackets, Chicago Blackhawks and Winnipeg.
He played in 30 contests during the 2017-18 campaign with the Jets, tallying three points (two goals, one assist), but has yet to see game action this season.
"It's been a couple days since I have been on the ice the last time," Dano said. "Its good, finally I went on the ice with the team and I am excited to be here."
The Avs held an optional practice on Sunday that saw 13 players on the ice, including nine forwards, three defensemen and goaltender Semyon Varlamov. Head coach Jared Bednar was not on the ice for the session, but he is excited for what Dano can add to his lineup.
"He is a young, skilled player. Has a real sturdiness to his game and can contribute in a bunch of different situations, including power play and penalty kill," Bednar said on Tuesday of Dano after the team claimed him. "I think he showed a little bit more of an offensive upside when he was younger. With the deep team that Winnipeg has, he probably didn't get as much ice time as we would have liked.
"I think we have some ice time that is up for grabs, and I think he can get in the mix on some of that. I will be interested to see how he plays and comes in here. He has got a great attitude. He is looking to try and earn more ice time, and we are excited to bring him on board because I think he fits in with our young group."
It is uncertain when Dano will make his Avalanche debut, but it could be as early as Monday when the Avalanche plays at the Philadelphia Flyers to close its four-game road trip.