Bailey-Nicholls arrives at the club having played for a number of sides at Step 4 level over recent years.
The 25-year-old spent time at the likes of Bedworth United and Sutton Coldfield Town last season.
Now he will link up with a Coventry side that have won just one of their opening seven league games, losing four and drawing twice.
They were also knocked out of the FA Trophy earlier this month, falling to a 4-0 defeat away at Quorn.
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