daneben
next to it
Indicates a position directly next to something or someone.
Der Tisch ist schön, aber der Stuhl daneben passt nicht.
The table is nice, but the chair next to it doesn't match.

next to it / off / additionally
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next to it
Indicates a position directly next to something or someone.
Der Tisch ist schön, aber der Stuhl daneben passt nicht.
The table is nice, but the chair next to it doesn't match.

'Daneben' is a pronominal adverb made up of 'da' and the preposition 'neben' (next to). It literally means 'next to that' or 'next to it' and refers to something that was mentioned earlier.
Dort steht mein Auto. Stell deins einfach daneben.
My car is standing there. Just park yours next to it.
The meaning depends strongly on context. The literal meaning is spatial ('next to something'). The figurative meaning expresses a negative judgment ('inappropriate'). A third meaning connects clauses and means 'additionally'.
Mein Schlüssel liegt auf dem Tisch und dein Handy liegt daneben.
My key is on the table and your phone is next to it.
In the meaning of 'inappropriate' or 'wrong', 'daneben' is colloquial. The phrase 'sich daneben benehmen' (to behave badly) is especially common and criticizes bad behavior.
Er hat sich bei dem Treffen total daneben benommen.
He behaved really badly at the meeting.
next to / besides
'neben' and 'daneben' can both describe a position at the side of something. The important difference is grammar: 'neben' is a preposition and needs a noun after it, for example 'neben dem Tisch' (next to the table). 'daneben' is an adverb and replaces this place expression when it is clear what you are talking about. Both words can also mean 'additionally' or 'besides'. They are easy to confuse because they look similar. The key point is: 'neben' is usually followed by a complement, while 'daneben' often stands alone. In addition, 'daneben' has its own meaning in expressions like 'sich daneben benehmen' (to behave badly): inappropriate or wrong.

Der Schrank steht an der Wand, und daneben liegt ein kleiner Teppich.
The cabinet is against the wall, and a small rug lies next to it.
Im Zug sitzt Lisa neben einem älteren Mann.
On the train, Lisa is sitting next to an older man.