The 'Clarets' target their first win of the Premier League season as they play Bournemouth on Saturday, and have also disappointed in their first European campaign in 51 years as they were beaten in the qualifying rounds of the Europa League.
Burnley sit dead last in the league table, though Dyche says his players can turn their form around this weekend at Turf Moor.
"We have kind of gone full circle in a very short time frame. Most people outside of us thought, Burnley proved [what they could achieve] last season.
"I wasn't taking it quite as powerfully as that because I know the demands of the Premier League and I know how you can have these runs.
"To start a season like this is not ideal. So we have to look to correct that. You have got to be aware of the situation and the truth of the situation.
"Through all of that we are actually back to being underdogs again. We are bottom of the league and everyone is saying that it hasn't started right.
"Weirdly we are back to being the sort of Burnley everyone supposes of us. Which is usually every season being this underdog that has got to punch above its weight - we have historically done this. We have got to do that again."