If records are deleted in Daylite, they are initially only moved to the trash. From there the deleted records can be restored or deleted permanently (see screenshot).
The Daylite trash can be reached in the menu bar of Daylite under Window -> Trash.
The option to include other users' trash is only available to Daylite administrators and superusers.
Only Daylite records (contacts, files, notes, etc.) can be restored, other things like labels, categories will be deleted permanently and can't be restored.