Davies scored the only goal in the second half to give bottom-of-the-table Blackpool all three points and lift them to within eight points of safety.
The defeat is Blues' first in their last six games and their first since Gary Rowett took charge, while the Seasiders are now three games unbeaten.
David Cotterill came close to giving Blues the lead after eight minutes but saw his low free-kick from 25 yards pushed away by Blackpool keeper Joe Lewis.
The hosts thought they had gone in front after 13 minutes when Davies swept Chris Eagles' cross into the net from six yards, only for the goal to be ruled out for offside.
Stephen Gleeson called Lewis into action again in the 20th minute with a right-footed volley from 25 yards which was comfortably held by the Blackpool keeper.
The home side threatened to go in front in the 24th minute as Eagles' free kick from the right edge of the area was met by Davies who saw his header from six yards deflected onto the roof of the net.
The best opening of the first half fell to Blues after 33 minutes as they cut Blackpool open down the right and Lee Novak saw his effort from 12 yards cleared off the line by Kevin Foley.
Rowett's side continued to push forward and just a minute later Gleeson's cross went over Lewis and was met by Michael Morrison, who could only head across the face from four yards with the goal gaping.
Eagles had the first opening of the second half as he picked the ball up 25 yards out and unleashed a right-footed shot which was high and wide of Darren Randolph's goal.
And Davies gave Blackpool the lead after 55 minutes as he latched on to a long ball forward from Lewis and rolled Paul Robinson to poke the ball past Randolph from 18 yards.
Clark's side threatened again in the 63rd minute as Jacob Murphy broke down the right and powered his shot at goal from 18 yards but Randolph parried away.
Murphy almost caught Randolph out from distance when he took a shot from 40 yards after 65 minutes and the Blues keeper had to back-pedal to push it over.
The Blackpool winger troubled Randolph once more after 79 minutes as he cut in from the left and forced the keeper to hold low down to his right.
Substitute Mark Duffy wasted a chance to equalise from a 25-yard free kick as Blackpool held on for the victory.
The defeat is Blues' first in their last six games and their first since Gary Rowett took charge, while the Seasiders are now three games unbeaten.
David Cotterill came close to giving Blues the lead after eight minutes but saw his low free-kick from 25 yards pushed away by Blackpool keeper Joe Lewis.
The hosts thought they had gone in front after 13 minutes when Davies swept Chris Eagles' cross into the net from six yards, only for the goal to be ruled out for offside.
Stephen Gleeson called Lewis into action again in the 20th minute with a right-footed volley from 25 yards which was comfortably held by the Blackpool keeper.
The home side threatened to go in front in the 24th minute as Eagles' free kick from the right edge of the area was met by Davies who saw his header from six yards deflected onto the roof of the net.
The best opening of the first half fell to Blues after 33 minutes as they cut Blackpool open down the right and Lee Novak saw his effort from 12 yards cleared off the line by Kevin Foley.
Rowett's side continued to push forward and just a minute later Gleeson's cross went over Lewis and was met by Michael Morrison, who could only head across the face from four yards with the goal gaping.
Eagles had the first opening of the second half as he picked the ball up 25 yards out and unleashed a right-footed shot which was high and wide of Darren Randolph's goal.
And Davies gave Blackpool the lead after 55 minutes as he latched on to a long ball forward from Lewis and rolled Paul Robinson to poke the ball past Randolph from 18 yards.
Clark's side threatened again in the 63rd minute as Jacob Murphy broke down the right and powered his shot at goal from 18 yards but Randolph parried away.
Murphy almost caught Randolph out from distance when he took a shot from 40 yards after 65 minutes and the Blues keeper had to back-pedal to push it over.
The Blackpool winger troubled Randolph once more after 79 minutes as he cut in from the left and forced the keeper to hold low down to his right.
Substitute Mark Duffy wasted a chance to equalise from a 25-yard free kick as Blackpool held on for the victory.