Skeletor had to choose which of his family he wanted to bring back to life: his wife or his daughter. He chose to bring his daughter back, so it's safe to assume that, yes, Skeletor does care about his daughter.

I don't think she's dead. Since He-Man and She-Ra are now two separate properties, She-Ra characters can no longer appear in He-Man shows or comics (even if they are canonically part of the Horde which still exists in both properties), its my personal theory that Skeletor's daughter is going to replace Shadow Weaver as the Horde Sorceress.

It's made clear in the tie-in comics.

There's an issue that shows up Skeletor's backstory and he's from a planet of skull-faced people.

His people were enslaved by minatour looking creatures. But Skeletor rebelled and killed the main slaver and freed his people. He met a woman and they fell in love and had an adorable little skull-faced daughter. But some of the minotaurs came back and attack Skeletor and family in their home. They killed Skeletor's family in front of him.

Skeletor is then found by Hordak to tells him he has magic that could bring his family back, but he has to serve the Horde. They conquer half the universe together until Skeletor becomes impatient and demands Hordak share with him the secret of how to resurrect the dead. Hordak does, but the catch is he can only bring back one, not both. So Skeletor has to choose between his wife and his daughter.

He chose his daughter.

Who is then immediately taken by Hordak to be raised by the Horde and Skeletor never sees her again.

None of this was referenced in the Rev show, which was actually very frustrating. Like, why go though all the effort of writing, and hiring artists to illustrate, and publish that comic which is supposed to tie in with Revelation, and then Revelation never uses it? What the fuck!? Really!

Maybe if they make a second season they'll use the comic backstory. They referenced the backstory they gave Lyn in the same comic. So maybe?

Honestly, I was more confused than frightened. Mostly because I was trying to figure out who she was supposed to be. Shadow Weaver? Light Hope? Entrapta? Skeletor's daughter that he gave to Hordak?

Skeletor very clearly recognized her. But we, the audience, had no idea until the Horde insignia popped up. Who is she supposed to be!?

I love it.

This is the best version of Skeletor.

And the best version of Panthor, too!

Excellent headcanon. 10/10 do recommend!

My personal favorite version of Keldor is from the Classic-Line comics. The one who's half Gar, the first born son of King Miro and was meant to inherit the throne and become King, until he was implicated in his step-mother's death and exiled instead.

That's the version of Keldor I imagine being her father. And, that version of Keldor did canonically have a child with Evil-Lyn. So, I imagine her looking like that child.

And under that baby-bonnet she's got her mother's Zalesian white hair.

Of course, this is just my personal interpretation of the idea of a daughter for Keldor. Which is basically just Skeleteen as a girl, really. I'm sure you and other people would have a different vision of the character.