Veteran striker Davies, 36, is looking for a new club after being released by Wigan's Championship rivals and neighbours after 10 years at the Reebok Stadium.
Coyle will now start to assess his new squad but was not willing to discuss targets as he was formally unveiled by Latics chairman Dave Whelan and chief executive Jonathan Jackson.
Coyle, who was sacked by Bolton last October, said: "Kevin was my skipper and an outstanding player. It would be remiss of me to mention individual players but he is a good lad.
"I think there is a bit of interest in Kevin but it is probably not what we are looking to bring into the football club although he is an outstanding man."