The 22-year-old, who struggled with injuries at the start of the campaign, has made 23 appearances in all competitions for the Villans this term.
Baker now hopes to become a permanent fixture in the Villa side in order to improve during the coming years.
"For me, it's been a step up from last season and I think I'm improving all the time. Hopefully I can keep learning," he told the club's official website.
"It's great that I'm being picked at the moment and I can't ask for much more. I want to build on that. The more I play, the happier I will be."
Villa continue their Premier League campaign on Sunday when they entertain Stoke City.