The Clarets play their local rivals at Ewood Park on Sunday afternoon in what will be the first-ever Premier League meeting between the pair.
Excitement is building in the north west, but while Caldwell wants the players to feed off the atmosphere, he is equally aware of the negative impact it could have on Burnley's performance.
"You get caught up in the whole euphoria and excitement to the game and it adds that little bit of tension and makes people do things they don't normally do - bad and good," Caldwell told the Burnley Express.
"It's important that, as a team, and as captain, I try to keep the lads calm. You want to be keyed up for the derby, but you can get over-keyed and too excited before the game and go out there with a rash tackle, or a rash decision and it costs the team.
"We have to just stay calm, although realising it's a very big game to a lot of people, including us. It's the happy medium that you need, and we've been pretty good at that in a lot of the big games we've played in the past."