Dalglish was confirmed as the Anfield outfit's permanent manager on a three-year deal in May having taken over on an interim basis following the departure of Roy Hodgson in January.
The Reds enjoyed an impressive second half of the season, climbing from the doldrums of 12th place in the table to eventually finish the campaign in sixth spot.
And defender Skrtel revealed how Dalglish immediately won over the dressing room and lifted all the players who were in the doldrums after struggling during Hodgson's ill-fated spell at the helm.
He told LFC Weekly: "Kenny gave us our confidence back. His first game was against Manchester United in the cup. Our first meeting with him took place that weekend and he said we had to trust him because he trusted us.
"He told us the most important thing was a good team spirit and if we played together we could get some success. He has kept our confidence high and that has been the most important thing.
"He's done it through his personality. He's a nice guy and he's always joking and smiling. He has changed the atmosphere around the team."
The Slovakia international centre-back admitted he had a lot to learn about Dalglish's time at Liverpool as a player and manager when he first moved to Merseyside in January 2008.
He added: "To be very honest I didn't know an awful lot about Kenny. I was very young when he was the manager for the first time.
"But in the four years I've been at the club I have seen him here and have learned about the history of the club and the part he's played in it. Now I know a lot more about him.
"Appointing him (permanently) was definitely the best option. I'm happy because he is a nice person and a great manager. I can see the future under him being very good."