With the Black Cats rooted to the bottom of the Premier League table, the Italian was shown the Stadium of Light door last Sunday when several senior players approached the club's board with concerns over his tenure.
Redknapp, who managed Di Canio during his time in charge of West Ham United, feels that his former striker's desire for perfection may have resulted in the tension that existed between him and his players.
"We're sorry to see Paolo go," Redknapp told reporters. "When he came in and got that victory at Newcastle, everybody was raving about him. Plus he did a great job at Swindon.
"Paolo's a perfectionist. He wants players to work hard, demands his players be super fit. But perhaps there were one or two players who thought it was over the top, weren't comfortable with it, didn't like it.
"Some players can be a little bit precious and he's got to learn about his approach in the future. Maybe he's got to learn to be temperate, temper it down a little bit, but I still think he has a lot to offer."