In the bottom of the fifth inning, Davis was lifted for pinch hitter Jace Peterson. Shortly afterward, the MASN broadcast showed a clip of Davis getting into a heated exchange with Hyde between the top and bottom halves of the inning.
"It was just a disagreement that we had in the dugout," Hyde said. "What was said and what we talked about, I'm not going to get into. We're going to keep it in house, and it's private. It's something that happens sometimes, and frustration boils over a little bit when we're not playing our best baseball the last couple of games. Unfortunately, I'm embarrassed it was caught on camera and people had to see it, but sometimes those things happen."
Hyde said he took the veteran first baseman out of the game.
"We had words, and I took him out of the game," the manager said. "Me and Chris have a good relationship and these things happen in competitive environments and it's something that'll pass and we'll get through it, but it's unfortunate that it happened in the dugout."
Although the exact nature of Wednesday's incident is unclear, it appeared as though Hyde, whose team was losing 6-1 at the time, said something to Davis before heading down into the tunnel toward the home clubhouse.
The 33-year-old first baseman quickly became agitated and moved toward his skipper but was restrained by veteran outfielder Mark Trumbo and hitting coach Don Long.
"There was obviously a little bit of a disagreement," Trumbo said. "I think this game was particularly tough. Almost nothing went our way. So I think that everybody was pretty frustrated, and those things, they tend to happen. Hopefully they don't happen in front of everybody, but in this case, it kind of did. Not ideal, but not that big a deal. This stuff happens. It rarely gets talked about because you don't see it all the time, but tensions are always high in the big leagues. Tonight, just a little bit too much, I think."
The Orioles' loss Wednesday gave the Yankees a three-game sweep. Baltimore pitchers gave up five home runs in the finale and surrendered a total of 16 homers during the three-game series. The Orioles have now served up 52 long balls to the Yankees this year, setting a major league record for most home runs allowed to one opponent in a season.
Before getting swept by their division rival, the last-place Orioles had played better recently, posting a 17-16 record over their previous 33 games. Including the sweep, the O's are 2-13 against New York and have lost all 10 matchups at Camden Yards this season.
Davis, who signed a seven-year, $161 million free-agent contract with the Orioles in January 2016, has struggled mightily at the plate. The former home run champ is hitting .182 with 111 strikeouts in 247 at-bats.
Earlier this year, he set a major league record by going hitless in 54 consecutive at-bats, a streak that dated to September of last season.
As his struggles have continued, the left-handed swinger has been used more and more sparingly against southpaw starters. He was in the lineup against Yankees left-hander James Paxton on Wednesday, just his 12th start against a lefty this season. In his only plate appearance before getting pulled, he struck out swinging.
Peterson, who replaced Davis, is also a left-handed hitter.
Hyde is in his first season as a big league manager. The 45-year-old former Cubs bench coach has guided the Orioles to a 38-76 record, the second-worst mark in the majors behind the Detroit Tigers (33-78).