Kashi was home to several historic Shiva temples. The Daksheshwar Temple is one among them. Kashi Khand mentions the significance of this Temple.
Lord Shiva was describing the numerous holy Teerths (Ponds), Koops (Wells), and shrines in Kashi. Lord Shiva enjoyed describing such locations (Kashi Khand, Chapter 97).
The Daksheshwar Ling is close to Mrityunjeshwar. The devotee gets absolved of all sins, whether they were done intentionally or unwittingly, by worshipping this Ling. Kalodak Koop is close to the Ling (Well). Every sickness can be cured by the well’s water.