The 35-year-old has succeeded Chris Kiwomya at the helm of the struggling Magpies as he returns to the club where his professional career began in the mid-1990s.
The Nottingham-born midfielder went on to play for seven other clubs, including Sheffield United, Portsmouth, Crystal Palace, Nottingham Forest and Leeds, where he became friends with his choice for assistant manager Greg Abbott, making almost 600 career appearances.
Derry takes charge of a team rooted to the foot of League One with a tricky FA Cup first-round trip to Hartlepool looming on Saturday, but he is determined not to become the latest short-term manager at the club.
"That stat is there for a reason and I'm not worried," Derry told Sky Sports News.
"It's a club that's not found the right balance and hopefully I am the kind of guy who is going to bring stability and a bit of enjoyment to the fans here because it's been an up and down time for Notts County fans in recent years.
"I remember very well the time I was supporting here and watching Neil Warnock and the great strides he made for Notts County. I am not saying I'm going to replicate that by any stretch of the imagination but what I can do is say that I am going to give absolutely everything for this club and myself.
"I have always said that this is the first result I look for after my own after playing for 20 years. It's the first port of call for me to see how Notts County have got on.
"Thankfully for me I am going to be able to run things from the sideline with a lot of help from Greg. I wouldn't be stood here without Greg Abbott as he is coming in here with the experience that's required for this job as well. I am coming here for the fundamentals that I bring to the football club so I am really looking forward to the challenge. It's a big challenge obviously.
"We have had a great morning this morning, the players have been absolutely fantastic. They were switched on on day one - you can't ask for anything else really - and I am really looking forward to Saturday's game."
Derry will not be able to continue his playing career and has hung up his boots for the time being having already turned out for Championship sides QPR and Millwall - he was on loan at The Den until January - this season.
He added: "What I have always said, especially this last two or three years, is that I am going to be the judge of when I finish.
"I didn't want to be rolling myself out there at 38, 39 getting stick from everyone saying 'you've had it'. I wanted to make that decision myself and as soon as this opportunity came my way I wanted to take it with both hands.
"It's disappointing to stop playing. Hopefully we can strike a deal with the authorities to enable me to still be a player for Notts County as well as manager. But I want to make the right impression on the boys. I want to give them a chance to show what they can do."