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They would level up, the more you walk, the more EXP you get so your pokemon levels up.

However, putting your pokemon in daycare is mainly for breeding and getting eggs, If you could train your pokemon by battling strong Pokemon you will get high EVs (Your pokemon attack, sp atack, defense, sp defense, speed) will be better than If it was in Daycare, not to mention that It may reduce the happines (I am not sure about the happiness but It's most likely to get lowered or maybe wont go higher)

Therefore leveling up is not everything, for example:

LV.100 Dialga (Trained) VS LV.100 Dialga (DayCare)

The Trained Dialga should absolutely defeat the daycare Dialga, therefore you're wasting your precious Dialga and Mespirit by having them in the daycare.

Not to mention that your pokemon will not get the attacks It would get If it leveled up with you.

For Good Pokemon Training, you must battle a pokemon that gives you the stat you need (for example when you defeat Graveler, it gives you 2 defense EV points when leveling up, but when defeating geodude you'd get 1 defense EV point.)

For more information on EV Training

http://www.gamefaqs.com/portable/ds/file/925601/48... (Check the Raising Part)

http://www.gamefaqs.com/portable/ds/file/925601/45... (EV Points Guide)

http://www.gamefaqs.com/portable/ds/file/925601/48... (Hotspots List)

For more information on Breeding:

http://www.gamefaqs.com/portable/ds/file/925601/48...

http://www.gamefaqs.com/portable/ds/file/925601/48... (Check the Breeding Part)

The best place to EV train your pokemon is the Training Area (after the National pokedex), there are all kinds of powerful pokemon that all gives great EVs!

YE. Each step you move is 1 EXP. Point. So go on step counter and start it over then get on ur bike put it on the fastest gear and ride back and forth.

yeah they can but bein legendaries it will take a while for them to level up....... and youll need alot of patience. but the thing of the experience points is tru. and i would not really put them in the daycare becuz how they delete thier moves so use with caution on dialga :0

Each footstep you take, is worth one experience point for each pokemon in the day care center.

every time u take a step and u have pokemon in the they will get 1 EXP. so i would use the counter app. and go CRAZY!!!

No. You must train them by fighting with other pokemon creatures

yes they will.It's like putting normal pokemon in.But it takes long for them to level up.(it took me up to almost the whole day to level up my dialga to lvl50,it's lvl71 right now.