Speaking to the club's official website, Dyche praised Vydra for his "strength of character" and added that the 26-yeaar-old gives the Clarets a new dimension going forward.
"He's different from the strikers we've got. Most people who know him and know the game will know that," the manager said. "He offers a different positional sense where he can play as a deeper striker – a number 10 – but equally he can work off the shoulder of defenders as well.
"The biggest thing for me was that he's at an age now where he's slightly more rounded and I think that will hold him in good stead. He's well-travelled, he's a very strong-minded person, I think, who moved away at a very early age to get on with his football career.
"I think there's a strength of character there and I think he made it clear this summer by not going to a number of different places he could have gone to, because of his desire to play in the Premier League.
"I think that's a good feeling to have and in a market that's very tough, the deal was refreshingly conducted in a really straight-forward and simple manner by all parties – the player, the agent and Derby County."
Vydra is unavailable for Burnley's Europa League clash with Istanbul Basaksehir on Thursday evening.