Lennon joined Burnley from Everton during the January transfer window and feels he is rediscovering some of his best form thanks to Dyche.
The 30-year-old told 'Sky Sports': "He has been very honest with me. He said, 'Aaron, I want you to come here, enjoy your football, play with a smile on your face and work hard'. And that's what I've tried to do.
"I've fully settled into the squad, the lads and gaffer have been great, and I think that's showing in my performances. Everyone has made me feel so welcome."
Having failed to win a game in January and February, Burnley won all three of their March fixtures and will attempt to extend that run when they travel to Watford on Saturday.
"We're on a great run of form and want to keep it going," he added. "We're looking forward to the Watford game and are going there in high confidence, looking to take the three points."