The Clarets are now nine points adrift of the Championship playoffs and have won just once in their last nine games, with their Turf Moor form a particular concern.
They have not registered victory on their own patch in their last five attempts and Dyche has admitted that fear is damaging their level of performance.
He told Sky Sports News: "There's too much fear in the group at the moment, [they are] playing with fear and you can't do that. There are too many playing in a constricted manner and it can come with big expectations.
"There's is a big expectation here, a really big expectation of being better, being in the top six and I spoke to the players about that. It's not going to go away, they've got to learn to deal with it but still have that freedom to go and play.
"We're nearly performing. The margins are so, so, so fine. A very short while ago we were looking like a real positive, progressive side. I noticed last year's record was better away than at home so is it one where the players have to deal with that expectation and learn to deal with it."
Dyche has been in charge of the Lancashire outfit since October 2012, after Eddie Howe left to rejoin League One Bournemouth.