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Dalek Caan was one of the four Daleks of the Cult of Skaro. Like the other members, he thought like the Daleks' enemies in order to find new ways of defeating them. He had a mind of his own and could imagine and think for himself.
Dalek Caan was one of the three Standard Daleks who were created to follow the Cult's leader: the supreme Dalek Sec. During the Last Great Time War between the Daleks and the Time Lords, the Cult took the Genesis Ark and fled the war into the Void, resurfacing later in London in 2007.
Arriving in 2007, Caan, Jast, and Sec scanned the brain waves of Dr. Singh and discovered another species had invaded Earth. Upon discovering it was Cybermen, the Cyber-Leader declared war while the Cult claimed it to be pest control. Caan took part in the Battle of Canary Wharf while the Genesis Ark (accidentally activated by Mickey) released millions of Daleks onto Earth. Because they had been through the void, they were covered in void stuff. The Doctor was able to open the rift the Cybermen had come through and reverse it, sucking in all beings covered in void stuff. As the Daleks were sucked into the Void, Dalek Caan and the rest of the Cult activated an emergency temporal shift and escaped. (DW: Army of Ghosts/Doomsday)
The Cult ended up in New York City in 1930 and recruited Mr. Diagoras, the head of construction for the Empire State Building. He kidnapped people for their research and for what they called the "Final Experiment". During their time in 1930, Dalek Caan served at the Cult's connection to Diagoras. Eventually, Caan took Diagoras to see their leader Sec who merged with Diagoras in his casing to become the first Human-Dalek. (DW: Daleks in Manhattan)
After Sec became a Dalek-Human, he showed feelings that their creator, Davros, was wrong about removing emotions and that the deaths at Hooverville were wrong. Caan and the other members felt that the plan Sec had for the new Daleks was unacceptable; it would change everything that makes a Dalek a Dalek and the Daleks would no longer be supreme. Feeling Sec was no longer a Dalek, Caan led a mutiny with Dalek Jast and Dalek Thay to imprison Sec, having poured a different gene solution into the Dalek-Humans than Sec had wanted, making the new bodies 100 percent Dalek.
Dalek Caan made himself Controller and became connected with the Dalek-Human army. When Thay and Jast ordered the new Daleks to destroy the Doctor, they questioned orders and the Doctor explained that he got in the way of the gamma strike which brought them to life, his DNA becoming mixed with theirs, giving them a little freedom. When a battle broke out between the Daleks and the Dalek-Humans, Jast and Thay were destroyed. Caan saw the new Daleks as failures and killed the entire species.
Caan was the last member of the Cult and, by extension, the only survivor of the entire Dalek race, there fore he was narrowed down to be the entire Dalek species. The Doctor confronted him and offered Caan help and compassion, being that he didn't want to cause a genocide. Caan activated an emergency temporal shift and escaped. (DW: Evolution of the Daleks)
Behind the Scenes
A new photo shows a Dalek mutant sitting in its casing without a dome and a bunch of wires connected to the casing. It is confirmed that this is Dalek Caan. The context of this picture is unexplained. But we will find out soon.
Rumours
In the picture above, Dalek Caan is shown chained up with the top half of his casing removed. The rumour circulating at the moment is that Caan used his emergency temporal shift at the end of "Evolution of the Daleks" to travel back in time and save Davros from the time war. Returning to the present day, Caan seems to have been driven completely insane by his experiences. Davros could have then chained him up for one of two reasons: Caan's own safety, or Davros' safety. This rumour is possibly true, because an insane-sounding Dalek laugh was heard during the "Next time" preview for "The Stolen Earth" shown at the end of "Turn Left".
Running on both of these theories, Dalek Caan could have been weakened by a second temporal shift but this wouldn’t change the colour of his armour. Rather, it is more likely that Davros gave him a new suit of armor that is red to mark him as the new Dalek Supreme and the special braces on it are to help sustain Caan. Or, running on the second theory, Dalek Caan’s new armor does not mark him as a Dalek Supreme, rather to be cautious around him, hence it’s red colour. The braces are for his own safety or Davros' Another theory is that Dalek Caan could have told Davros about Dalek Sec's Hybrid and Davros has punished Caan for not stopping him. Or he is punishing Caan for not killing the Doctor while he had the chance. Another plausible theory is that Dalek Caan does not recognise Davros as being higher in command than he: only seeking Davros' help, not leadership, and is therefore punished.