The midfielder signed at the end of the season from Valenciennes, where he has been part of five successive mid-table finishes.
And he told olweb.fr: "It's a new challenge. It feels like I am moving to a new league, having been used to playing for survival. I want to prove that I can play at this level."
Danic was also linked with St Etienne but said: "OL made a firm approach to my agent and I felt they wanted me more - and there is also the factor of playing in the Champions League.
"I am very proud and honoured to join OL.
"From outside, OL look like a big club. You just have to look at their honours list and their performances over time. OL inspire respect."
Coach Remi Garde said of the 31-year-old: "I wanted to bring in wide players. We were sorely lacking in this area. Gael is an experienced player. I am very pleased to have Gael in my team.
"His statistics say a lot but beyond that, he in an interesting player in terms of his style of play."
Danic has arrived for an initial 800,000 euros (£680,000) with a potential 200,000 euros in add-ons.
With Lyon looking to keep a tighter rein on their finances, the possible departure of fellow midfielder Maxime Gonalons could bring in a fee far in excess of that figure.
Club president Jean-Michel Aulas said of the France international: "I do not think he will leave this year.
"Unfortunately, there are lots of clubs who have made offers for him, including one of over 15million euros."
Lyon returned to training today ahead of the new season, minus France internationals Yoann Gourcuff, Bafetimbi Gomis, Clement Grenier et Alexandre Lacazette who will rejoin the side on July 1.
Goalkeeper Remy Vercoutre trained separately as he continues his recovery from a knee ligament injury, while Sidy Kone left the session early.