The 27-year-old, who has scored once in 10 appearances for his parent club this season, will remain with the Sky Blues until January 5.
Coventry manager Steven Pressley has said that he is pleased with Dagnall's arrival.
"I've spoken about our need to add to the squad to freshen things up and give our players some help and Chris will certainly be able to do that," Pressley told the club's official website.
"I'm fully aware of his capabilities having spent quite a lot of time watching him in the early part of his career at Rochdale and he made a lasting impression on me.
"His work ethic and his eye for goal will certainly give us a boost and I'm looking forward to working with him."
Dagnall joined Barnsley from Scunthorpe in 2012.