The Russians suffered their first loss of the tournament on Sunday as they were beaten 1-0 by Belgium in Rio de Janeiro.
They must now win their final Group H game against Algeria if they want to progress in Brazil.
"I still believe we have a chance, but we now have no choice but to beat Algeria," Capello is quoted as saying by FIFA.com.
"The important thing for us – in what is our first FIFA World Cup for 12 years – is learning about the level required to compete in these kinds of tournaments."
Russia take on Algeria in Curitiba on Thursday.