The Welsh writer, who has also penned TV hits including Queer as Folk, Years and Years, and It's a Sin, will be presented with the award at the BAFTA Cymru Awards on 5th October.
Davies said: "Receiving this Outstanding Contribution Award is an honour. It means people have watched something and remembered something that you've done."
The writer is well known for his dedication to seeing Wales represented in his work, most prominently when it was decided that Cardiff would be the new home of Doctor Who when Davies brought it back to screens in 2005.
Previously speaking to WalesOnline, Davies reflected on the importance of telling Welsh stories in his projects, saying: "I was very keen to get Welsh stories into my work, like Doctor Who was filmed in Cardiff, it's why I invented Torchwood which is set in Cardiff Bay, because I'm passionate about getting minorities on screen and I think Wales is a minority."
Speaking to the Big Issue, Davies said: "Tip Toe is Queer as Folk crossed with Years and Years. That's exactly what it is. I'm very proud of it. It's radical. It's savage. And it's hilarious.
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