The centre-back spent 15 years at Anfield before joining Huddersfield Town in 2015.
"It's a weird feeling, when I play against them I want to win more than ever. I don't know why that is. I just do," said Coady.
Asked about the Reds' chances this season, Coady added: "I know it's early doors, but I think with Liverpool this year they don't seem to be panicking.
"People are talking about them conceding and not keeping clean sheets but when they do they think it's okay cause we can score another. City seemed like that last year.
"With Liverpool, they missed out on the Champions League the year before and then they kick on again because the manager is that good.
"I don't want to speak too soon but they look to be going [up] again which is so good to see for them."