It's not the scene that's freaky (though it has its Squick moments), but the part with Dark Danny before he kills his human half. gives off a face past the disturbance scale. Oh, if looks could kill...
And just before that, Danny's evil half claws Vlad's ghost form right out of him and then fuses with it. Dark Danny did some pretty disturbing stuff to his enemies.
The entirety of Danny's Rogues Gallery in the future, and all the awful stuff that was done to them. Johnny 13, the motorcycle junky, is inexplicably in a wheelchair, and Ember mentions her singing career going downhill when Dan essentially damaged her vocal chords with his ghostly wail. Not to mention Damien, Valerie's father, who somehow lost an eye and one of his freaking arms.
Jazz realizes that the Danny she's been speaking to is not her brother. Dan keeps an eerily calm demeanor while Jazz begins to lose it.
Jazz:You're not Danny!
Dark Danny Well, I was, but I grew out of it.
Dark Danny turning around head firstExorcist-style, accompanied by a horrible cracking noise as his neck does things it clearly was not meant to do.
" But me - my future? I'm inevitable."
The scene where Dark Danny forces a Time Medallion inside Danny's body while the latter can do nothing but scream in pain.
The future Box Ghost's delivery of (his normally hammy) line: "BEWARE..."
Why are we even making this list? The entirety of the episode is practically a pool of Nightmare Fuel!
And then there's Identity Crisis, the episode where Technus is accidentally released from the "Level 0" glitch. Danny attempts Form Duplication to fight him, resulting in nothing short of unadulterated Body Horror (least of which being mouths for eyes and eyeballs on ends of tongues).
The "Level 0" glitch itself is a bad case of Fridge Horror at the very least. Being trapped in complete darkness for a prolonged period of time, with no stimulation of the senses and no one but yourself to keep you company? That's a Fate Worse than Death if I've ever heard one.
Vlad's motivation for becoming a villain (murder the Hypotenuse protagonist's father so he can marry Maddie, his longtime crush, and gain custody of her children) is very, very, disturbing.
The scene where Dani melts back into ectoplasm is both a Tear Jerker and extreme nightmare fuel. Made even worse because it happens just after Danny does his last ditch effort to save her.
The scene at the end of "My Brother's Keeper" where Jazz uses the Fenton Peeler on Spectra. She literally removes layers of her youth until Spectra is an old lady. The fact that she gets older as her skin is being peeled off is seriously disturbing.
Vlad planned to create a clone of Danny and then kill off the original. To make things worse, after Vlad's beloved stable clone was destroyed he had a huge Freak Out moment and was alarmingly close to murdering him without a stable clone if not for a timely intervention by Danny's friends. Nightmare Fuel doesn't even begin to describe it.
"...And then you will be obsolete." That episode scared the crap out of me as a child.
The Ghost Writer. While he was played more for laughs (and was the villain of a holiday special, to boot), the fact remains that he can take control of all existence with a typewriter, and the only thing that can slow him down even a little is when he runs into a situation where he can't rhyme. And once his typewriter is destroyed, it doesn't stop the surreal situation, it just means he can't control it anymore; Danny had to learn the lesson the Ghost Writer was trying to teach him before he could break out of his story.
When Freakshow turns himself into a ghost with the Reality Gauntlet, he really goes all out on making himself look like a nightmare creature.
To be fair, his first appearance had a scene where he has Danny chase Sam onto a tightrope with a scythe, dressed up like the Grim Reaper. Danny's smile when he tries to kill Sam really doesn't help . . .
This troper personally found the scene in which Poindexter first possessed Danny's body to be extremely disturbing, with the eerie green lighting, and Danny's contorting, spasmodic movements as Poindexter literally rips his spirit from his body.
The scene in "Doctor's Disorders" in which Bertrand transforms is a major example of Body Horror: his skin glows green and begins to bubble as if it were boiling, while at the same time his head rotates gruesomely before his body expands and his scalp tears off, exposing his brain.
Prince Aragon's dragon transformation can be kinda disturbing.