A stunning month for Cooper's side saw four wins from five matches with an 11-3 goal tally.
Former Charlton Athletic manager Alan Curbishley chairs the Sky Bet Manager of the Month judging panel and said: "Four wins from five matches in October marked a great month for Colin Cooper and lifted Hartlepool well up the table.
"Impressive wins on the road ensure his team is one to watch for the remainder of the season."
Sky Sports' Football League pundit Don Goodman said: "Colin Cooper praised his players' commitment after his team rose from 22nd to 13th
"He deserves to take a massive amount of the credit. Three Sky Bet League Two clean sheets in October have given his side a solid base to build on."
The League sponsors are offering 50/1 for Hartlepool to be top of the table on Christmas Day.
Striker James picks up the player award after scoring three goals in the month, including a deft lob that thrilled Pools fans in the 3-0 win at Exeter.
James bagged the winner with the only goal of the game against Plymouth Argyle, and also netted in the 3-1 win against AFC Wimbledon.
Cooper said: ""I think the award is a great reward for Luke and the hard work he has put in since the start of the season.
"He has been a joy to work with, is always keen to listen and learn, and it was lovely to see him score some important goals and play with a big smile on his face.
"Assistant manager Craig Hignett has to take some credit because he's a put a lot of work in to him. But Luke's attitude to his football is fantastic."
Sky Sports' Football League pundit Don Goodman said: "At the tender age of 18 Luke is flying for Hartlepool - providing opportunities for his team-mates as well as scoring goals.
"His three goals in October have helped lift his team from 22nd to 13th in Sky Bet League 2."
The 18-year-old is 20/1 with Sky Bet to net a league hat-trick in November.