Davies, 19, had been expecting to be part of the Swans' Under-21 squad this season, but he seized his chance after Taylor suffered a broken leg in September.
Taylor had made the left-back slot his own for club and country, but Davies has shown remarkable maturity and composure for one so young and has made the step up to Premier League and international level with little difficulty.
The teenager is set to win his third cap when Austria visit the Liberty Stadium on Wednesday, and Coleman has been amazed by the progress Davies has made in such a short time.
"Ben has done well, he's only 19," said the former Fulham and Coventry boss.
"Sometimes you get opportunities, sometimes you don't take them and sometimes you grab them with both hands and that's what Ben has done.
"He's grown in stature and confidence. Offensively he's getting better and better and he's got a great mentality and attitude to football and he's really done brilliantly."