The Clarets have claimed 11 points from seven matches since Dyche replaced Eddie Howe as manager in late October, with their latest impressive display coming in last weekend's 1-1 derby draw at home to Blackburn.
"He's been absolutely fantastic," said Shackell.
"All the lads would say the same.
"He's got high expectations, high standards and expects a lot of hard work. That's exactly what you need and it's already sort of reaping the rewards because we've had a few nice results.
"He's come in and tinkered a few things defensively and as a team we've really enjoyed working with him so far. It's onwards and upwards."
Dyche's biggest impact to date has come in shoring up Burnley's defence, changes that centre-back Shackell has been only too happy to welcome.
"At the time I think I remember saying we need to be harder to beat as a team," he said.
"That's something we've really nailed down on the training pitch. Everybody knows their jobs and responsibilities and roles and want to step up to the mark.
"We're certainly making it harder for teams. We're slowly building confidence defensively.
"As you've seen we can cause any team problems going forward, so if we can just marry those two together then we won't be far off."
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