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From the wikipedia:

Tyrone “Ty” Johnson (Cloak) and Tandy Bowen (Dagger) met in New York City as runaways. Tyrone was a 17 year old teenage boy from Boston, Massachusetts with a debilitating stutter. He ran away to New York City when his speech impediment prevents him from stopping a cop from the shooting and killing of his childhood friend.

Tandy was a 16 year old teenage girl from a privileged upbringing (born in Shaker Heights, Ohio) who ran away because she thought her multimillionaire supermodel mother was too busy for her daughter with her career and social life.

Originally when they met, Tyrone considered stealing Tandy’s purse, only to be shamed when she kindly offered him money. A thief stole the purse and Tyrone retrieved it for her. Afterwards they had dinner and became fast friends. When the naïve Tandy accepted an offer of shelter from some strange men, a wary Tyrone went along to protect her.

The two teens were soon forcibly delivered to criminal chemist Simon Marshall, who was developing a new synthetic heroin for Silvermane and the Maggia, testing it on runaway teens with fatal results. Johnson and Bowen somehow survived injections of the drug, and they fled. During their escape, the drug turned them into super-powered beings. (It was later revealed that they were both actually mutants, and that the drug had simply awakened their latent abilities.)

Tyrone found himself engulfed in darkness and seized by a strange hunger which eased in the presence of Tandy, who was glowing with a brilliant light. Trying to hide his newly shadowy appearance in a makeshift cloak, Tyrone began absorbing Marshall’s thugs into his darkness while Tandy struck them down with daggers of light. The two teens dubbed themselves Cloak & Dagger and declared war on drug crime in combating drug-dealers and helping runaway children.