Davey accused Davies of almost bringing the game into disrepute for comments he made prior to the game when he suggested his struggling Forest side needed to develop a nasty streak.
The Forest chief cited Sheffield United defender Chris Morgan - whose elbow on Iain Hume last season left the Tykes striker with a fractured skull and put his career in serious threat - as an example for his men to follow.
The remarks were greeted with disgust by Davey, whose lost his job as Preston youth-team coach when Davies was in charge at Deepdale.
Davey said: "What he (Davies) said was bordering on bringing the game into disrepute.
"We as a football club are very upset at the way things have happened, and he's asked his players to emulate a player that has come here and put one of my players in hospital and has been out for the season.
"He's done it to try and intimidate the fans, the whole atmosphere, but for me it's very unprofessional for a manager to do something like that."
Davies rounded on Davey and could barely contain his anger as he branded the Barnsley boss "a disgrace" and "small-minded" for his attack.
The Forest chief even claimed to have been partly responsible for keeping Barnsley in the Championship last term.
As Derby boss, Davies loaned the Tykes defender Lewin Nyatanga and striker Jon Macken.
Davies fumed: "I was asked a question about the type of people coming to this football club and I said it's the likes of Chris Lucketti and Chris Morgan - their type of mentality and experience which is proven year and year - that you need at this level.
"For anybody to make a suggestion that I was referring to anything else is the most small-minded thing I've ever seen in my life and I can't believe it.
"I'm disappointed because people at this club have a very short memory."
Hume is still recovering from his career-threatening injury which came from an elbow by Morgan.
Davies raised eyebrows when he added: "Morgan and Hume are best pals - they go out together and they're best mates.
"I was referring to Lucketti and Morgan type players but I can't believe for one second that somebody would suggest I was trying to stoke the flames.
"What an absolute disgrace - a disgrace - from the same manager that was loaned Macken and Nyatanga last season. He's got a very, very short memory."
Jamal Campbell-Ryce's second-half penalty miss spoiled what should have been a perfect afternoon for Barnsley as Robert Earnshaw struck to hand Forest a priceless point.
Tykes winger Campbell-Ryce headed his side into the lead just seconds after the restart with his eighth goal of the season to send a bumper crowd of almost 20,000 into raptures.
In the 57th minute he had the opportunity to double his tally from the penalty spot but his weak effort was well saved by Forest goalkeeper Iain Turner and the golden opportunity was lost.
Campbell-Ryce and Barnsley were ruthlessly punished 11 minutes later when Earnshaw struck in clinical fashion to rifle home a low shot and breath new life into Forest's survival prospects.
Davey added: "Jamal is the penalty taker and he's not missed one this season, but the goalkeeper made a good save.
"We've got seven games left and we need to win a few more to make sure we stay up."
Forest boss Davies felt his side deserved all three points, insisting:
"Only one team should have won the game.
"I was very proud of the players and our magnificent fans."