Team officials call Davis' injury a "stress reaction," which is an area of bone tenderness which, if exacerbated, can develop into a fracture.
Davis is officially listed as day to day, coach Monty Williams told reporters before Tuesday's contest. Davis has not yet been ruled out of Wednesday night's game at Indiana and team officials say he will travel with the club.
Forward Ryan Anderson will replace Davis in the starting lineup against the Knicks.
Davis, the No. 1 overall selection in this year's draft, initially hurt his ankle during the Hornets' loss to Oklahoma City, but played through it and continued to practice. The 6-foot-10 Davis scored a season-high 28 points Saturday against Milwaukee but aggravated the injury during Monday's practice.
Davis, who missed two games earlier this month due to a concussion, is averaging 16.0 points and a team-leading 8.3 rebounds this season.
Information from The Associated Press was used in this report.