The Burnley manager watched his players frustrate Arsenal for 70 minutes at the Emirates Stadium on Saturday, before Alexis Sanchez made the breakthrough and Calum Chambers added a second two minutes later.
Sanchez scored again late on to ensure the newly promoted club's wait for a first Premier League win of the season continues.
Dyche was far from despondent in defeat, though, saying that his side are operating at a lower level than Arsene Wenger's men.
"We have played six out of the top ten so far and with all due respect to ourselves, we are not ready for six out of the top ten," he said.
"We are ready for a different market and that’s not it today, but it’s important that we understand it, we learn from it and we improve from it.
"It's a very high state of learning that I am in as a young manager and a very high state of learning that the players are in, and we have to learn quickly.
"But there has to be a reality to our journey and that's beyond our reality at the moment."
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