Ings has 11 Sky Bet Championship goals this season, and 15 in all competitions, but sat out the clash against the Hornets with a hamstring injury and saw his team-mates drop out of the automatic promotion places.
But Dyche, who managed Watford for 13 months between June 2011 and July 2012, claims his troops did enough to seal a win that would have seen them return to the top of the table.
"I was pleased but not with the outcome," he said. "We wanted to win, of course. We're thirsty for wins but the performance was good, particularly in the first half.
"We dominated the play and created enough chances to maybe nick one and their keeper has made a fine save.
"It could be a coincidence that we haven't scored and Danny hasn't been playing. You can't define them sort of things, but I do know he is in really good form with (Sam) Vokes.
"We created enough to get more than a draw, but they are a good side - credit to them - and they have a good manager.
"In the second half it balanced a bit more. I think they started well in that first 15 minutes but we got hold of the game again and we finished very strongly, which we have a habit of doing.
"Overall, it was very positive and we're a point closer to the top again."
Watford goalkeeper Jonathan Bond denied Scott Arfield twice in the first half but the Hornets improved after the break.
Lewis McGugan went close just after half-time and, in the last minute of added time, he saw Clarets goalkeeper Tom Heaton equal to his near-post effort.
"I thought we created a couple of very good chances and, to be honest, it looked like we were getting better and better so I am a bit disappointed," said Watford boss Gianfranco Zola, whose side extended their winless run in the league to seven games.
"I have to be pleased because it was a good performance and the kind of performance we needed to play.
"Pressure is something you can feel if you think too much about it. I believe a lot in my players and, also, I believe a lot in the work that I do so I always trust that.
"Honestly, I'm delighted that they got a performance like this because to play the type of football that we play we need confidence and that will give us a lot of it.
"I knew that as the game progressed we would get better and better so it is a pity because I thought we were going to score a goal and it looked like we might at the end."