Taylor, 23, arrived from Leeds United as a left-back but Dyche has been impressed with his defensive ability and had seen Taylor perform well as a central defender in training.
"Since we've had him here, we've been impressed with his defending, his physicality, he's quick and strong - we threw him in a couple of times in training and just liked the look of it," Dyche told the Lancashire Evening Telegraph.
"We said to him just to be open-minded. It doesn't mean he's going to play there, but we wanted another look at it.
"There's no story there, we just said we needed to put minutes into him, to get used to what we are, not 'oh, we've found a centre back'.
"That story's not ready to write yet.
"Who knows, in the future it might be."