Cazorla played on the left wing last Saturday and scored twice to help the Gunners earn a crucial 2-1 win over Aston Villa.
Arteta feels that his Spanish teammate benefits from having more freedom to roam forward and create opportunities in the final third when he plays out wide.
He told the club's official website: "He seems to be comfortable when he plays off the left. He's got a lot of freedom and he causes problems to the other teams because we can use the extra man in midfield.
"The way he plays, he takes a lot of knocks and plays a demanding game physically as well. To adapt to the Premier League in his first year and do what he's doing, I think we have to clap him. He deserves that.
"I think he [Cazorla] needed a few goals like that. He helped the team to earn the points today. He was outstanding, his overall play as well. He was involved in many areas of the pitch today and he's a top player."
The 28-year-old reached double figures with his brace last weekend and has now scored 11 goals for the Gunners.