The rock-bottom Lancashire club have endured a torrid campaign to date, but sprung a surprise on their in-form opponents with a 1-0 triumph against manager Lee Clark's former club.
Former Bristol City and Derby County man Davies produced the game's turning point as he beat his marker and finished past Darren Randolph early in the second half.
The defeat is Gary Rowett's first since taking over as manager at St Andrew's and gives Blackpool hope of climbing off the foot of the table before the year is out.
Malky Mackay's wait for a first win as Wigan Athletic manager goes on after he saw his side beaten 1-0 by Norwich City courtesy of Jonny Howson's strike.
Fellow strugglers Brighton and Hove Albion were beaten 3-0 by leaders Derby County - a Chris Martin brace and Johnny Russell's goal in the first 20 minutes enough to secure maximum points as Steve McClaren's men bounced back from defeat to Leeds United last time out.
Derby joined the rest of the division's top four in picking up victories as Ipswich Town, Bournemouth and Middlesbrough all won.
Mick McCarthy's Ipswich came from a goal down to cap off a poor week for Leeds, who saw president Massimo Cellino disqualified from owning the club by the Football Legaue in midweek due to tax issues.
Mirko Antenucci scored after four minutes for the Yorkshire side, but a Daryl Murphy brace helped ensure a 4-1 success, while fellow high-fliers Bournemouth also came from behind to win.
Harry Arter and Matt Ritchie were on target in their 2-1 success against Wolves, who saw Rajiv van La Parra and Matt Doherty dismissed, while Boro sit fourth after hammering Millwall 5-1, Jelle Vossen grabbing a hat-trick.
Brentford slipped to a rare 2-1 defeat against Huddersfield Town, and Blackburn Rovers failed to regain their place in the play-off spots as Claude Dielna's late goal earned Sheffield Wednesday a 2-1 win.
Wednesday's south Yorkshire neighbours Rotherham United drew 0-0 with Cardiff City, while Nottingham Forest and Reading were held at home by Charlton Athletic and Bolton Wanderers respectively.
