Burnley have struggled upon their return to the top flight, winning just four of 27 matches as they occupy a place in the bottom three.
Only one of those victories has come away from Turf Moor - a 2-1 win at Stoke City in November - although Dyche's men surprised many with their exploits at title chasers Chelsea and Manchester City.
Burnley came from two down to rescue a 2-2 draw at City in late December, before Ben Mee's header earned a 1-1 draw at Stamford Bridge the weekend before last.
"We know they are a good side, we had a very close result over Christmas [when Liverpool won 1-0 at Turf Moor]," Rodgers said.
"Every game is super competitive and every team has got quality. We are going into every game respecting the opponent but believing we can win.
"Burnley have given everything for the cause. Sean will be up there among the candidates for manager of the year."
Liverpool have been strongly linked with a move for Burnley's top scorer Danny Ings, who is out of contract at the end of the season, but Rodgers was coy in his response to questions about the England Under-21 international.
"I rate Burnley as a team and their manager," he added. "Sean is very talented. They have gone away from home in big games and got good results."
Liverpool come into the game in a rich vein of form, boasting an 11-match unbeaten run in the Premier League and having beaten champions City 2-1 on Sunday.
By contrast, Burnley were beaten 1-0 at home by Swansea City on Saturday, and have taken just two points from their last six top-flight outings.
However, striker Sam Vokes is taking heart from their results away from home against some of the division's strongest teams.
"Of course it's a tough one and they're a top side," Vokes told the club's official website. "But we've nothing to fear and we've shown what we're about all season.
"We've gone to Man City, Newcastle and Chelsea and picked up points, so we need to take confidence from those sort of results and take it into that game."
Liverpool have been dealt a blow with the news that Jordon Ibe will be out for up to four weeks with a knee injury, while Steven Gerrard (hamstring), Mamadou Sakho (hip), Glen Johnson (illness), Lucas Leiva (groin) and Brad Jones (thigh) are all doubtful.
For Burnley, Dean Marney and Kevin Long (both knee) remain long-term absentees, and Matt Taylor's Achilles problem means he is unlikely to feature.
Get the best features, fun and footballing frolics straight to your inbox every week.
Thank you for signing up to Four Four Two. You will receive a verification email shortly.
There was a problem. Please refresh the page and try again.