Dalton's career began in 1982 when cast as Randy Anderson by Francis Ford Coppola during a nationwide talent search for the teen ensemble The Outsiders.

Dalton rejoined his The Outsiders co-stars C. Thomas Howell and Patrick Swayze in Red Dawn (1984), a story of a group of teenagers fighting Soviet Union troops who had invaded the United States.

After Red Dawn, Dalton's first made-for-television movie was Brotherhood of Justice (1986) as a rebellious teenager, and he appeared in the short-lived TV ensemble drama The Best Times (1985).

He also had TV guest appearances in the late 1980s on Highway to Heaven, Quantum Leap, Alien Nation and as General Custer on Doctor Quinn, Medicine Woman.

He then returned to acting in War of the Worlds 2, Children of the Hunt, Darkroom (which he also executive produced and provided music for), the 3-D zombie thriller Day of the Living and The Day the Earth Stopped which Dalton also wrote and produced, and The Land That Time Forgot, which Dalton adapted from the Edgar Rice Burroughs novel.