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Coyle picked up the award this afternoon ahead of Wolves boss Mick McCarthy, Reading boss Steve Coppell and Plymouth manager Paul Sturrock. He succeeds McCarthy who picked up the award following Wolves unbeaten start to the campaign.
The Clarets have recovered from poor early season form to win four and draw one of their next five games,
"It's a tremendous accolade," Coyle told BBC Radio Lancashire. "It's credit to the football club and everybody involved with it.
"As the manager and the figurehead you're the recipient of the award, but it's through the hard work that everybody's put in."