The 53-year-old ended his five-and-a-half-year tenure at the Madejski Stadium on Tuesday following the 2-0 defeat to the Clarets which meant his side missed out on an immediate return to the Premier League.
Coppell led Reading to promotion to the Premier League in 2006 and they enjoyed a fine debut season in the top flight before being relegated the following year.
Having missed out on promotion this season, Coppell believes it is time for a change in direction for Reading and himself.
"Given the result it seemed the right thing to do and the right timing," said Coppell. "Last season I made a decision to continue and wanted to erase relegation from our minds by getting us back into the Premiership.
"My sole intention was to get promotion, that was my reason for continuing. I thought we were good enough but it just wasn't meant to be and it's time for someone else to have a fresh appraisal of the squad.
"It's right for the club and right for me. I think it's time for a break. I've done eight years on the bounce as a manager and you never get chance to draw breath."