The 22-year-old is yet to make a Premier League start for Tottenham this season and Mauricio Pochettino sees a move to Turf Moor as beneficial for him to gain first-team experience.
Sean Dyche's side, who are only two places below Tottenham in the league table, have been chasing a winger after seeing their options in that area depleted last month when Republic of Ireland international Robbie Brady underwent knee surgery.
Nkoudou revealed it was advice from ex-Burnley defender and Tottenham team-mate Kieran Trippier that helped sway him over a move to east Lancashire.
"When I spoke with Trippier he told me good things about this club, about the players and everything about Burnley," he told Clarets Player HD.
"I am happy to be here, so thank you, Trippier! I think it's a big opportunity to play my first minutes this season in the Premier League.
"Everyone is shocked because Burnley is just after the big six. They have played very well. I watched the last game against Liverpool when they played very well and were unlucky.
"That's why I have come here, to find football.
"I knew (Dyche) is a big manager who likes young players and players who go forward, so it suits my character to come here and I am happy to work with him.
"I hope to help the club. If I can, I will. But the last word is with the manager. If he puts me on the pitch I will do everything to help the team go forward.
"I am ready to play and waiting on the starting blocks. If the manager puts me on the pitch I will to everything on the pitch."