Nigel Pearson's side have emerged as serious title contenders this season but have fallen off the pace slightly with consecutive losses to Sheffield Wednesday and Brighton.
But Schmeichel insists they remain confident of success in the Saturday lunchtime fixture and is delighted with their start to the campaign.
"Being a point off top spot is a good position," he told the Leicester Mercury.
"If anyone had said we would be going into the Christmas period being one point off the leaders, we would have bitten their hand off.
"We are still in a great position and we have some great games coming up that everyone is buzzing for."
Burnley boss Sean Dyche was keen to play down the significance of the encounter at the King Power Stadium though, insisting all matches are crucial as they look to secure promotion to the Premier League.
"They are all big games," he told the Lancashire Evening Telegraph.
"People might look at it as a six-pointer, I just look at it as another big game.
"These games are important anyway in any season, whether it's Burnley going to the so-called big clubs with the stadiums and the fanbase or clubs coming to us."
Watch Leicester v Burnley on Sky Sports 1 HD from midday on Saturday.