Davis has made only four appearances for Wanderers since joining from Portsmouth in the summer of 2009 and missed virtually the whole of last season after undergoing surgery to repair an articular cartilage injury.
The midfielder came out of a recent reserve game against Manchester City feeling some discomfort in his knee and Coyle has vowed to take no risks with Davis' recovery.
"Sean played for the reserves the other week against Manchester City and he felt a little twinge in his knee," Coyle said.
"We've done a scan and he has been told to rest completely for six to eight weeks.
"It's disappointing for Sean and the football club because he has worked ever so hard to get himself in decent shape but we have to make sure that we do the right thing.
"It's the advice that we have been given and that's where we are with everything."