Terms of the deal were not disclosed by the team but PuckPedia reports the contract is worth $750,000.
Boyd, 27, split last season with the Toronto Maple Leafs and Vancouver Canucks, appearing in 39 games. The six-foot pivot had five goals, 10 points and two penalty minutes.
"We are pleased to have Travis join the Coyotes," Coyotes general manager Bill Armstrong said in a statement. "He is a versatile, two-way center who can fill a lot of different roles for our club."