The Italian coach believes that his team has the correct mentality to play in the Uefa competition, which he described as more open than Serie A in terms of playing style
The Nerazzurri are currently seventh in the Serie A standings following a three-game losing streak, while they will take on Olympique de Marseille in the Champions League Round of 16 after finishing at the top of their group.
"At first, we had better results in the Champions League than in Serie A," Ranieri told France Football.
"The game is more open in the Champions League, while it is more closed in Italy.
"When I arrived [in September], we could not be 100 per cent focused on Serie A. However, we immediately won our matches at CSKA Moscow and at Lille.
"I believe that this team has its natural habitat in the Champions League. Our players have a lot of experience in this competition, so they approach the matches with the right mentality and focus."
Ranieri also took the time to praise Marseille coach Didier Deschamps, saying: "He deserves to coach a big Italian club."