Dale is just an overprotective father and genuinely views Latina as his daughter. However, as she grows older, SHE'S the one who has romantic feelings for Dale and starts to pursue him, especially near her adulthood. Because of her advances, Dale is torn about the fact they are in no way related but also by the fact he raised her as his own since she was a little kid. People forget it was Latina who started this, not Dale. So the Usagi Drop comparison is on point in this aspect. I don't watch the anime, but I'm guessing (I could be WAY off!) Dale being the one harboring feelings for her happens there. Anime, in my experience, tends to gloss over some key points in the middle of the story and even rewrite it to hit their timetables.