Dano has starred in movies such as Little Miss Sunshine and 12 Years A Slave and earned a Golden Globe nomination for his portrayal of musician Brian Wilson in 2015's Love & Mercy.
Jim Carrey last played the villain in 1995's Batman Forever, directed by Joel Schumacher.
Robert Pattinson is playing Batman in the film, and Big Little Lies star Zoe Kravitz has been announced to play Catwoman.
Earlier this month, Robert Pattinson revealed to Esquire magazine he doesn't understand how he was cast as the caped crusader.
"I was so far away from thinking it was a realistic prospect. I literally do not understand how I've got it, at all."
The film is due for release on June 25, 2021.