Sturridge, who joined Chelsea from Manchester City in 2009, has struggled to make an impact at Stamford Bridge but found a new lease of life during a loan spell at Bolton, with eight goals in 12 appearances.
With Chelsea still to appoint a replacement for Carlo Ancelotti, it remains unclear whether he will be in the first-team reckoning next season, and Coyle believes the 21-year-old should develop his game in another loan spell at the Reebok Stadium.
He told the club's official website: "I feel with Daniel that another period with Bolton Wanderers would certainly take him on to the next level of his career, and then be a starter for Chelsea.
"Just now he is under Drogba, Torres, Malouda, Anelka, Kalou - as outstanding a player as Daniel is. Time will tell, but we give them the platform, the opportunity and the belief to play in the best league in the world."