As mentioned, Daud controls nearly identically to Corvo. He has access to many of the same powers, though most of them must be bought with runes found in each area. Some of them are slightly changed: Blink, for example, stops time for as long as Daud remains motionless (or for as long as you leave the movement stick alone). This allows you to make adjustments during mid-air Blinks. Daud doesn't carry around a creepy mechanical heart, so Void Gaze is his tool for locating runes and bone charms. Perhaps Daud's most noteworthy ability has to do with the fact that he's part of a league of similar assassins; he can summon assassins to assist in combat.
There are a couple of new combat tools at your disposal. One of them is the Chokedust Grenade, which does exactly what its name suggests. Another is the Arc Mine, which has the same effect as a hostile Wall of Light. I personally always prefer the sneaky approach, but you have several options should things go badly.