The 33-year-old ex-England international, who is yet to feature for the Villans this season, has joined the Sky Blues until November 22.
Manager Tony Mowbray told City's official website: "I'm delighted to welcome such a high-calibre player to the club. Joe has a great pedigree, both on the domestic and international stage, and I'm sure he'll have a fantastic impact during his time at the club.
"I've met with Joe and he has watched us play several times this season. He likes the way we play the game and because of that, he has shown a real enthusiasm to come and play for the club. He's a player who will give us another option in the forward areas and I'm sure the squad are looking forward to working with him.
"We've got plenty of games coming up which will be crucial to us maintaining our early-season form and I'm looking forward to seeing Joe in action for the Sky Blues."
Cole will be in attendance to watch League One side Coventry host Blackpool at the Ricoh Arena on Saturday.
The club sit fifth in England's third tier, three points adrift of co-leaders Burton Albion and Walsall.