The Trotters captain, who earned his first England cap against Montenegro 12 months ago on the back of impressive displays for his club, was dropped from Coyle's XI for last month's game at Arsenal.
The 34-year-old, who reclaimed his starting spot at home to Chelsea last weekend, says the omission in North London was the wake-up call he needed.
"I don't think my form has been great and I rightly found myself out of the side," Davies told the Daily Mirror.
"Maybe because I was playing consistently, I took my eye off it.
"There's competition for places now and I found myself out of the reckoning.
"Maybe that's what I needed. I felt I performed a little better in our last game against Chelsea.
"Perhaps I lacked a little bit of confidence in myself, I'm not too sure, but I'm back in the side and I'm captain of the club so I feel I've got a big part to play.
"You take it upon yourself to work hard in training and earn the opportunity to play and then you have to go out and perform."
Bolton suffered a 5-1 thrashing at home to Chelsea on Sunday, their sixth defeat on the bounce, to leave them rock-bottom of the Premier League table.
Davies has urged his team-mates to move on from their latest setback and look ahead to the next game at Wigan after the international break.
"We have to put this all behind us and get a positive result against Wigan in a couple of weeks," he added.
"We do need to stand up and be counted now."
Source: Team Talk
Source: Team Talk