The 39-year-old, who was given permission by Scottish outfit Falkirk to speak to the League One outfit this week, has put pen to paper on a three-and-a-half-year contract.
Development director Steve Waggott told the club's official website: "We are absolutely delighted to welcome Steven Pressley to Coventry City as our new manager.
"He's a hungry and highly ambitious young manager and we have all been very impressed with him and his record so far. We wanted someone who could come in and hit the ground running because we have 10 very important games left this season.
"But we also wanted somebody who would take us forward into the future and prioritise youth development and the club's role in the community. Steven ticked every single box and I know everyone at Coventry City, from supporters to staff, will get right behind him."
Pressley has replaced Mark Robins at the helm of the Ricoh Arena.