Mostly, what happened was that "Daddy" realized, through our conversations before he became my dom, that I had a little girl side and decided I would call him Daddy. I didn't realize it but he did. "Sir", that is his preference to be called Sir.
Most doms have preferences of what they want to be called. As I stated some where in this forum there several titles a dom can use...most just pick what suites them.
My Master loves Sir, Master, and Daddy......which works for me. I haven't called him Daddy yet....but I am sure in time that will happen. Especially when he and I go real life and my "little girl" side needs to be given attention.