Ding's victory also made him the lowest ranked player - 62nd in the world - to win the event in it's 28-year history and meant he was only the second 18-year-old in history to win two ranking events, following his China Open success in April.
The Chinese sensation led Davis 5-3 at the interval, before the six-time world champion hit back at the start of the evening interval.
But Ding matched the Nugget - renowned for his tactical nous - shot for shot in the safety department, at times forcing the 48-year-old veteran to tap the table in appreciation.
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At 9-6 up, Davis played a poor positional shot on the green, and Ding was able to clear up to the pink to clinch victory.
Davis admitted that his lack of break-building led to his downfall after the match:
"I didn't make the most of my breaks and kept slipping out of position," he said.
"But he played fantastic. I've had a great week, but Ding was stronger on the day."
With the help of an interpreter, Ding thanked the crowd at the Barbican centre for their support.
"This is the second-most important ranking tournament, so it is a great pleasure to win it," said the Chinese cueist.
"York is a big step for me. I've gained loads of confidence and experience here."
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