He is to force a by-election in his Haltemprice and Howden constituency which he will fight on the issue of the new 42-day terror detention limit.
Mr Davis, 59, told reporters outside the House of Commons he believed his move was a "noble endeavour" to stop the erosion of British civil liberties.
He told reporters outside the Commons: "I will argue in this by-election against the slow strangulation of fundamental British freedoms by this government."
BBC Political Editor Nick Robinson said it was an extraordinary move which was almost without precedent in British politics.
On Wednesday, he accused the government of "buying" the nine votes they needed to get the legislation through the Commons.
He vowed that the Conservatives, who are the official opposition and favourites to win at the next election, would continue the fight in the House of Lords.