Warnock has not managed since leaving Leeds United in April last year despite being linked with numerous clubs.
The 65-year-old spent over two years at Palace before leaving for QPR in March 2010 and he was re-appointed by the Selhurst Park outfit on Wednesday, as Tony Pulis' replacement.
And Warnock spoke of his affection for Palace when revealing the offer was simply too good to refuse.
"It's a great place here. I've always enjoyed myself at Palace and I'm looking forward to the challenge," Warnock told Sky Sports News.
"It's nice to come back. I just think it's a great club.
"[They are] probably the only club I would come back to. I've had quite a few offers over the last 12 months.
"The noise they [Palace fans] make - it makes you want to come back to work."
Warnock also revealed that he had a lengthy conversation with Manchester United winger Wilfried Zaha, who progressed through the ranks at Crystal Palace before leaving last year.
And Warnock - who said Palace would be very active throughout the remainder of the transfer window - hinted at a season-long loan move for the 21-year-old being made official soon.
"I think Wilfried needs us, like we need Wilfried," he added.
"He's been at a big club like Manchester United and I think he's got a bit lost. I spoke to him last night for a good hour.
"Wilfried's always had a great attitude for me. He wants to learn, he wants to do extra training and he wants to improve.
"The fans [at Palace] love him and that's what he needs. He needs an arm around him. I hope that we can get the best out of him for the next 12 months.
"I think we're going to be really busy [in the rest of the window]. We've got to try and get some targets over the line. It's not going to be easy but it never is."
Pulis reportedly resigned after a breakdown in relations with co-chairman Steve Parish over the club's transfer policy.
But Warnock said he is excited to work with Parish and that he was confident the pair could help preserve Palace's top-flight status.
"He [Parish] is desperate, not just to stay in the Premier League, but to develop the club," he continued.
"We've lost a few players so there's one or two doubters.
"But we have got a good group. They are a very together group. We are going to try and get three or four players in before Monday."
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