Davies, who worked with Freedman early in 2013 before departing for Preston North End, told talkSPORT: "I don't want to come across as bitter, but I think he created a bad atmosphere.
"It became a sterile place. What the club stood for when Sam Allardyce was there was the fans, the togetherness. It was a great club, a family club, and it felt like that had been ripped out. It wasn't a great place to be."
Davies believes that the Trotters have made the right choice in Lennon.
"I think it is a good appointment by the club. It is just what they need really. He has got a big job on his hands, but I think he is capable of getting them out of the trouble they are in right now," he added.
Bolton, who currently sit bottom of the table, travel to Birmingham City on Saturday for Lennon's first match in charge.