Two years later, in November 2011, he was appointed Crewe manager, winning a Wembley play-off final in 2012 and the EFL Trophy in 2013.

He left Crewe in January 2017 (at which date he was the fourth longest serving manager in the top four divisions of English football) and then head coach at National League club Leyton Orient for just over four months to November 2017.

In October 2022 he became interim manager of Wolves' first team ahead of Julen Lopetegui taking charge from 14 November 2022.

[6] Davis remained as Thordarson's assistant through the Icelandic's short lived tenure at Gresty Road before the former Stoke City manager was relieved of his role in October 2009.

[13] Davis had lost two key figures in that season's promotion campaign in the summer with Nick Powell completing a three million pound transfer to Manchester United and captain Ashley Westwood for an undisclosed fee to Aston Villa but they were replaced by a number of summer signings such as forward Mathias Pogba, defender Mark Ellis and midfielder Abdul Osman.

Davis described the decision as a "noose being removed from our necks" citing the case as one of the reasons for the team's poor start to the campaign.

"[19][20] The pair were later reinstated to the squad and first team duties following an improvement in their attitudes and helped Crewe avoid relegation on the last day of the season with a 2–1 victory over local rivals Preston North End.

The following season started in a similar pattern, with the team winning just two of their first 15 league matches, and crashing out of the FA Cup in the first round, defeated at Gresty Road by non-league Eastleigh,[21] forcing Davis to defend his position as the 'right man' for the job.

[25] On 10 July 2017, Davis was appointed as head coach of newly relegated National League club Leyton Orient on a two-year contract.

[29] In October 2022, following the sacking of Bruno Lage, Davis was appointed interim manager of his boyhood club, with under-23s coach James Collins, also formerly at Crewe, as his assistant.

[32] After multiple failed attempts by the club to sign a permanent manager, it was initially announced Davis would remain in charge for the rest of 2022.

[38] During Steve Davis's time as Crewe manager, for 33 minutes of a match at Port Vale on 22 February 2014, his sons played on opposite teams against each other.