Three second-half goals led to Villa running out 4-1 winners in the West Midlands derby, leaving leaders Wolves with just a seven-point advantage over their local rivals.
Wolves face Reading on Tuesday night as they attempt to improve on a run of just one victory in five matches, and Coady has acknowledged that Wolves need to put their recent disappointments behind them.
The 25-year-old told the club's official website: "It's gutting, it's disappointing, it's a tough one to take to come to Villa Park.
"I fancied us to give a good account of ourselves and win the game and it's not happened. It's a bad feeling but we've got a game on Tuesday, we've got to look up, get ready for that and really go again.
"It's getting to an important time of the year as everybody knows and we need to get back to winning ways, and quick. We've got to put it behind us and quick. We're back in training, we work hard, we look at where we went wrong and put it right - it's a simple as that."
Wolves now sit just three points ahead of second-placed Cardiff City, who make the trip to Brentford on Tuesday evening.