One day during a management shakeup in comes one of the worst managers I have ever had to deal with, and believe me I have had some horrid managers in my time (and I'm thinking I'm going to have to add another to the list now, but that's unrelated). She was abusive and power tripped like you wouldn't believe. She would not hesitate to call you out on any perceived mistake no matter how minor, even during the middle of our rush (which were insane at that place), and in fact generally did so during rush. That might have been bearable if it wasn't for the fact that she made us listen to broadway musicals and, I kid you not, Disney singalongs with high-pitched chipmunks and elves and whatever during said rushes (I hold back my obscenities). She made the knife-wielding coked up alcoholics that were there before her look sane by comparison (they really were). And unfortunately there was little one could do because she could always pull seniority.
How did I deal with her? Basically, I just started criticizing her back, and subsequently ignoring her and her power attitude. She would tell me I was doing X wrong in the most passive-aggressive manner you could imagine, so I would then go ahead and tell her how to do something in that same soft toned, fake smiling, passive-aggressive manner. She would start commanding me to do things, and I would tell her I couldn't, had other things to do, too bad, or just flat out ignore her - never responding with anything other than a "yeah, whatever" attitude. She was my manager, and in the end I didn't care. She had little authority over me because I gave her little authority. She got no deference from me and ignored me from there on out effectively.
I quickly realized that I was the one that gave her the ability to abuse me. Had I just sat there and taken it, I would have spent months possibly dealing with her abuse and hating it all while she smiled and enjoyed herself twisting her knives around in me. Instead I turned it around on her, showed her I wasn't one to be easily messed with, despite my quiet temperament, wasn't one to care about her petty games, and she backed off and spent her energy on the easier targets that would respond "better". Some people will take advantage of those that let them, but they have their limits. That manager didn't want to deal with someone that was going to talk back and give her his own criticisms and not play into her games. I watched over the weeks as other coworkers were forced to deal with her unrelenting bs. They weren't willing to tell her off, they were scared of her in some sense, maybe for their jobs, got riled up and upset, and she used that leverage to push them around. The people that were willing to just give her a bit of what she gave them didn't have to put up with much at all by comparison.
So, my point is that, yes you should talk with your manager, but sometimes being a little more assertive can help. Sitting back and taking it and then getting upset over it is the worst response to such people, to anything. Maybe you can be nice in return, but first you have to get over her, don't give her one inch of leverage on you. It's hard to be truly nice to someone when you're feeling them dig into you like that.
You define your relationships with other people as much as they do. That doesn't excuse her actions and behavior, but does partially explain why she feels she can do it. I doubt she would act that way around everyone. She obviously doesn't respect you, and there are many routes to change that, but you're not taking any right now, and it's that lack of action that is perpetuating her lack of respect. Simply ignoring her is a form of action and sign of self-respect, and the easiest. Just don't respond, don't even pay attention, to what she says. If you must, just blow her off in the most stale way possible. Your time is too valuable for her pettiness, her words mean nothing to you. She means nothing to you, and that's the last thing she wants to feel.
But there's a lot of momentum, it will take a while with such an approach, there are years of history, and it will take a lot of effort by you. Just remember, one day you might look back and laugh at, or feel sorry for, her. But either way she won't have that power over you again.