Shingler, who can also play in the second row but has been given the nod after Newport Gwent Dragons flanker Lydiate picked up an injury in Amlin Challenge Cup action at the weekend, has been capped for Wales Sevens and Davies believes his call-up is fully deserved.
"We're very pleased for Aaron," said Davies.
"He's gone very well this year, he's a quality player, the try that he scored on the weekend, I don't think there's many back-row players in world rugby who would have scored that.
"So he's got real quality, he's got a real edge to him, he's got an aura about his personality and I think he's a ready-made international rugby player."
Shingler is the brother of 21-year-old Steven who has been at the centre of an eligibility row between Scotland and Wales.
Utility back Steven joined London Irish from the Scarlets in the summer and had been called up by Scotland on valid ancestry grounds, only for the International Rugby Board to rule he could not play for Andy Robinson's side because he had featured for Wales Under-20s.