Four wins and a draw in the month continued the Reds' unbeaten run under the returning Scot and kept their eyes firmly fixed on a play-off place.
Davies told the club's official website: "The Manager of the Month award is always a great one to receive as, invariably, it reflects an excellent month's work on the pitch."
Top-six ambitions face a big test on Saturday as Forest face league leaders Cardiff City.
Malky Mackay's men remain clear favourites to be in the Premier League next season despite some patchy recent form. They will be able to call on the services of on-loan defender Leon Barnett for the rest of the season after agreeing a deal with Norwich City.