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Not all daffodil bulbs need to be lifted & stored. Many varieties are great for leaving to naturalize and establish. But, you may find that you need to dig up and divide them once an area becomes too full of bulbs (they simply won't perform as well as they start to compete with each other).
If you do decide to divide or store them, this guide shows you the correct procedure to follow.
Storing narcissus bulbs:
1. Once the foliage has died back, lift them out of the soil carefully by using a forked trowel. Be careful not to damage the fleshy part of the bulb.
2. Clean the bulbs of excess soil and trim the roots back. You can also remove any flaky outer layers of of the bulb.
3. It's best to only keep the healthiest looking bulbs. Discard any diseased or damaged ones.
4. Lay out the bulbs on some newspaper, or a tray, and leave them to dry for about 24 hours. This helps to prevent any fungal disease or rot developing whilst you store them.
5. Place the bulbs into paper bags (or nets) and store them in a cool, dry place.