Paul Lambert moved to sign Holt - whom he managed at Norwich City during a successful spell - after Libor Kozak suffered a broken leg.
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"Having worked with him for three years at Norwich, I know what he can do and that's important."
Holt scored 17 goals for Norwich in his first season in England's top flight under Lambert and is keen to aid Villa's fight against relegation after dropping down to the Championship with Wigan in the summer.
"To be able to come back into the Premier League, especially at a club as big as Villa, is fantastic and it's a an opportunity for me to work with the gaffer and his staff again as well," Holt added.
"He's able to get the best out of people, there's no doubt about that. I know what he wants to achieve here in the long-term and I know what he expects.
"I know what he expects on the training ground and I'm looking forward to working with him over the coming months to try to help things along and to consolidate the club's position.
"We all know this is a club in transition but we're making progress this season. We've got a lot of young lads at the club who are doing fantastic and I'm really delighted to be a part of it and to be able to lend a hand."