The Blues hero, who won three Premier League titles and three FA Cups in his seven years at Stamford Bridge, has been impressed by what he has seen this term.
Under their new boss, Chelsea have recovered following their 10th-place finish last season and built a new identity.
Antonio Conte's 3-4-3 set-up has resulted in eight successive league wins, with Chelsea now sitting top of the table.
With the benefit of not having European football, Antonio Conte has been able to get his philosophy across
Joe Cole
Victory at title rivals Manchester City on Saturday was crucial, and ex-midfielder Cole believes Pep Guardiola's need to juggle Champions League __football too has contributed to the Blues' rise to first.
"They have been excellent [this season]," Cole told talkSPORT.
"With the benefit of not having European football, Antonio Conte has been able to get his philosophy across and the way he wants to play.
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"You have seen them improve steadily from the start of the season and that result on the weekend was a real marker down in the title race. That is the first proper big game this season and you have to look at Chelsea being the favourites now.
"If Chelsea would have got a point there, that would have been a great result. Man City really needed to win the game.
"Pep’s revolution might take a bit of time because of the European __football – there isn’t enough time to work on the training pitch and get your messages across. With Conte he has had that time and he is doing a great job.
“The team looks like it has got personality and character again, which is important."
Previous fringe players such as Pedro and Victor Moses have adapted exceptionally to the new system, with Chelsea able to solely focus on the Premier League.
Up next for Cole's old side is a visit from West Brom on Sunday (12pm), giving them an eight-day rest between games due to their failure to qualify for Europe last term.