Holloway took over as manager of the Foxes in November 2007 but failed to prevent the club from suffering relegation to League One and left at the end of the season.
"I will probably get an awful reception at Leicester - I was at the helm when they went down." Holloway told the Leicester Mercury.
"After the season finished we had some discussions and I realised my position had become untenable.
"They were better off having a clean slate and I am glad they have come back up. But you have got to take responsibility for your actions and I will admit there are lots of things I would do differently if I had my time again.
"I gave 100% to the cause but unfortunately we ran out of time.
"But I feel Blackpool and I are a good fit for one another and I want to be at the club for a long time. I feel I am at the right place now and happy to get another chance."