Is there any way to view modern calendar by day only so it shows the time slots just like classic calendar shows when we click view by day?
Do I need to create SPFX calendar from scratch showing calendar by time just like outlook?
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You can use calendar view in SharePoint online modern experience lists. The calendar view shows all the events for a day on right side panel like:
Check below articles related to calendar view in SharePoint online modern experience:
If you are looking for more advanced & customized day view, you have to develop it using SPFx.
Also check other SPFx calendar samples available here which might help you: sp-dev-fx-webparts samples