The Clarets sprung out of the blocks to take a 2-0 lead within 10 minutes through goals from Johann Berg Gudmundsson and Jay Rodriguez.
Matt Lowton’s stunning third soon after the re-start effectively killed off all hopes Palace had of a second half fightback.
And Dyche was left feeling justified in making eight changes in the midweek FA Cup defeat to Bournemouth, as the Clarets picked up a valuable win on the road on their return to league action.
The Burnley boss said: “The fact you are away from home to a good outfit, and given the energy, tempo, mixed play, quality and some terrific displays, that’s probably up there as one of our most complete performances of the season.
“It’s a very pleasing win and we started well. I had to make some important decisions in the week for the cup game, but I felt the main side that had been playing needed a rest.
“I got a few question marks when we went out – and I felt then we could have delivered a performance to win, but we didn’t – whereas today we did.
“It’s risk and reward and of course, when you deliver a performance like that, it makes sense, and you have to say it was a good call because the players looked so strong.”
The Clarets were down to two fit senior strikers in Rodriguez and Ashley Barnes after losing Matej Vydra to a hamstring injury on Friday.
Erik Pieters was substituted late on with a tight groin, to add to the walking wounded, but there was better news on skipper Ben Mee, who needed seven minutes of treatment on the pitch before being stretchered off with a head injury late on, but was later described as “fine” after walking unaided back to the dressing room.
“We have a lot of games and we’ve picked up more injuries today, so we are trying to do what we can to protect the players,” added Dyche.
“We wanted that demand from the players, physically, and they delivered it – pressing out of possession and the play in possession.
“That’s how I want us to play, and you can’t always do it in the Premier League because of the strength of the league.
“Sometimes you have to fight and do everything you can to get a result and other times, like today, we find that mixed play that can be effective.
“There was a really good energy to the side, mixed with good quality. We got off to a great start and the energy in the side, the tempo in the play and commitment to the cause were important factors.
“When you throw in some quality as well, it was overall a very good performance.”
Lowton capped a fine day – and another eye-catching performance 0- with his first goal in five years.
And Dyche purred at the quality as the right back scored his first Premier League goal for the Clarets with a barnstorming run and sublime volleyed finish, following a one-two with Jay Rodriguez.
Defender happy with season's work as Clarets aim to move up on final day
“What a goal it was from Matt,” he said. “He has come back into the dressing room to a round of applause from the lads, and rightly so because he has been in really good form lately.
“He’s found a nice groove to his performances and some of his passing today was excellent, but the finish today was sublime.”
There was a sad footnote to the day, with the news that Alan Woan, the father of Dyche’s assistant, Ian, passed away on the eve of the game.
Dyche explained: “Ian unfortunately lost his father overnight to Covid and the complications of it.
“He was 90-years-old and had a really good life. But I want to mention Alan because he played here for Crystal Palace, so it was a nice thing for the Woan family because they have been through a lot.”