The 29-year-old American has now won 51 career titles, just two short of the 53 held by Monica Seles who is ranked eighth on the all-time winners list.
It was also her fourth victory in Zurich, where she has reached the final all six times she has played. "You never get sick of winning," said Davenport, who dined with Roger Federer on the eve of the final.
"It's a great tournament to win. I always do well here and it's always nice to come back to a tournament like that. "But I didn't make it easy on myself, flying back home from Germany and coming back late, and it almost backfired in the first round."
Schnyder challenged well in front of her hometown supporters, but she was ultimately overpowered by top seeded Davenport, who forced her into numerous errors, especially on her backhand.
It was Schnyder who held the early advantage, holding break points to lead 3-1 and 4-2, but it was top seeded Davenport who earned the first break to lead 4-3 when Schnyder made a backhand error.
Davenport went on to serve for the set at 5-4 but was broken with a fine forehand winner from the Swiss left-hander. And Schnyder almost took the set when she led 40-0 on Davenport's serve at 6-5.
But Davenport dug herself out of trouble, and claimed the tiebreak when sixth-seeded Schnyder netted a forehand.
There were four breaks of serve in the first six games of the second set, and it wasn't until the eighth game that Davenport finally managed to earn the lead, converting her fourth break point to lead 5-3 and serve out for her sixth title of the year.
"This whole week wasn't easy," said Davenport, who struggled in three of her four matches and saved match points against Daniela Hantuchova in her opening match. "
"I expected tough matches and got them. It was a really up and down match again today, but I finally felt at the end from being down 3-1 to win that set 6-3 I was a little more consistent, a little more aggressive, and I was able to finish off the match strong. "
"I came through on the big points and my game was there when I needed it."
By reaching the final, Schnyder has increased her chances of playing in the season-ending WTA Championships in Los Angeles. The top eight players in the points race will compete, and Schnyder's success this week has lifted her above Venus Williams to seventh place.
"I faced an opponent who was just ready for everything I had today," said a disappointed Schnyder. "She was maybe lucky in the first set to win it but she was definitely better over the two sets. She deserved to win but I made her play. "
"Her game is so dominant. She plays without missing, and with accuracy to the lines, very deep. It's very tough to stay with her. The only thing I can say from my game is that I could have served maybe a little better, but it's not easy when you feel the pressure coming from the returns."