Born to a single mother, Betty Brown, in York on 23 December 1948, Davis was initially brought up by his grandparents there. His maternal grandfather, Walter Harrison, was the son of a wealthy trawlerman but was disinherited after joining the Communist Party; he led a 'hunger march' to London shortly after the more famous Jarrow March, which did not allow Communists to participate. His father, whom he met once after his mother's death, is Welsh. After his mother married Ronald Davis, the family moved to London, where they lived initially in a flat in Wandsworth which Davis has described as "a terrible little slum".

At the time of the 2005 Conservative leadership contest, David Davis was Shadow Secretary of State for the Home Department. His Campaign Manager in the leadership contest was Conservative MP and Davis's deputy as Shadow Home Secretary, Andrew Mitchell (who in 2010 became Secretary of State for International Development in Prime Minister David Cameron's Cabinet).  Davis was initially the front runner in the contest, but after a poorly received speech at that year's Conservative Party Conference his campaign was seen to lose momentum. However, referring to a Conference speech by the party's former leader, Campaign Manager Andrew Mitchell said: "William Hague made a great speech which many people will judge to be better than all the other leadership candidates put together. What that tells you is that being absolutely brilliant at being able to make a speech at conference is not the be-all-and-end-all of leadership. There are other things as well."  In the first ballot of Conservative MPs on 18 October 2005, Davis came top with 62 votes. As this was less than the number of his declared supporters, it became clear that the Davis bid was losing momentum. The elimination of former Chancellor Kenneth Clarke left the bookmakers' favourite, David Cameron, without a rival on the centre of the party. In the second ballot, held two days later on 20 October 2005, Cameron polled 90 votes, Davis 57 votes and Liam Fox was eliminated with 51 votes so Davis went through to the next stage with David Cameron.  In spite of a strong performance in a BBC Question Time head-to-head debate in the final stage of the leadership contest, Davis could not match his rival's general popularity. Conservative party members voted to elect Cameron the new Conservative leader, Davis losing with 64,398 votes against Cameron's 134,446 votes. Cameron chose to re-appoint his rival as Shadow Home Secretary following his victory.

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