Mr Steele, 52, who was lead singer and songwriter with the Scottish folk group the Battlefield Band, died last week in an Edinburgh hospice after a fight against an inoperable cancer.
Glowing tribute messages and condolences from fans living as far apart as Alaska to Adelaide and across Europe and America have been sent to a website dedicated to the popular musician's memory.
Davy, a father of four, from Lasswade, Midlothian, had been diagnosed with the tumour a year ago and had to give up his role in the group.
And they supported his musician wife Patsy and his children with messages of encouragement.
Patsy, 40, said: "His great passion was music. He was a full-on personality and the life and soul of the party - a big party animal.
"He toured internationally with the Battlefield Band, but was also with a number of other bands throughout the years making folk music."
She said he had bravely dealt with his illness and passed away surrounded by his family at the Fairmile Marie Curie Centre on 11 April.
Patsy added: "He was just incredible when he was diagnosed - helping others to
get through it.
"He used to sing in pubs too, but his lifetime ambition was to tour the world with a band, and I am glad he managed to do it.
"Everyone has been very kind and the music community have rallied round."
Members of the Battlefield Band and their management team at Temple Records in the US said they were saddened by Davy's death.
The singer's grown-up son, Mark, said he had been overwhelmed at the hundreds of messages the family had received.
Multi-talented musician
He said: "I have never had the opportunity to send my own message, but I would like to say that the love and the hurt shared by so many has moved me to tears.
"It means so much to us all that my dad gave so much joy, pleasure, laughs and friendship to so many people."
Mr Steele was a multi-talented musician who also played the guitar, the bouzouki and the bodhran. He made three solo albums and two with the Battlefield Band.
He leaves a two-year-old son Jamie and three children from his first marriage, David, Mark and Krysty.
His funeral will take place on Friday at 1400 BST at Mortonhall Crematorium in Edinburgh.