The Italian was sacked on Monday with the club bottom of the Premier League with just one point from five matches, amid reports of a major rift between Di Canio and his players.
But Redknapp, who was Di Canio's manager during his playing days at West Ham, has offered his support to the former Swindon boss, insisting he was simply a hard task master.
"We're sorry to see Paolo go," said Redknapp.
"When he came in and got that victory at Newcastle, everybody was raving about him. Plus he did a great job at Swindon.
"Paolo's a perfectionist. He wants players to work hard, demands his players be super fit.
"But perhaps there were one or two players who thought it was over the top, weren't comfortable with it, didn't like it.
"Some players can be a little bit precious and he's got to learn about his approach in the future.
"Maybe he's got to learn to be temperate, temper it down a little bit, but I still think he has a lot to offer."