Martin has featured in the first team just three times since Hughton took charge in the summer, and has opted to go out on loan to prove himself before his Canaries contract expires at the end of the campaign.
The 24-year-old has played 117 times for the Carrow Road side since his debut in 2006, but will now feature in League One until January.
"With anybody who goes out on loan, it is about playing games and coming back a better player," Hughton told the Eastern Daily Press. "The opportunity arose and we felt it was a good one.
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"In that respect it was no different to letting Jacob [Butterfield] go out to Bolton last week. These are always tough decisions, but the lads need to play.
"I think what you can do as a manager is be greedy and look after yourself and the club and keep everybody here for any glut of injuries you might have, but it is about trying to get the balance right."
Meanwhile, Swindon boss Paulo Di Canio was happy to welcome his new arrival to the County Ground, with the Italian hoping his new striker can boost the Robins' promotion push.
"He is a modern footballer," he told reporters.
"His first touch is good and he plays around the box, and he is a good player like we want to have. What he misses at the moment is matches.
"It will take time for him to be fit like the others, and he will see maybe part of the game and then gradually more."