Final answer:
The mode of narration in 'Daisy Miller' by Henry James is third-person omniscient, which allows an in-depth exploration of the characters' psychology and social interactions.
Step-by-step explanation:
The mode of narration used in Henry James's Daisy Miller is a third-person omniscient perspective. This type of narration provides the author with the flexibility to offer insights into the thoughts and motivations of any character, which complements the Realist tradition of deeply exploring characters' psychological dimensions. In Daisy Miller, the narrator's observations and descriptions of the interactions between characters suggest a society preoccupied with social etiquettes and the complexities of human behavior, here centered around the character Daisy Miller and her interactions, particularly with Frederick Winterbourne. The narrative voice plays a crucial role in conveying the story and developing character analysis without giving outright judgments, thus leaving the reader to ponder the intricacies of the characters' intentions and societal norms.