The 32-year-old, who scored 53 goals in 92 games for Norwich, was signed by Villa to replace the injured Libor Kozak.
"Losing Libor was a blow to us, obviously. When I knew Grant had become available it was something I wanted to pursue quickly because he'll add strength and experience to what is still a young squad overall," Lambert told avfc.co.uk.
"I know what he can do and that's important."
Villa are 11th in the Premier League table, five points off the relegation zone and have struggled for goals this season having only scored eight times at home.
"To be able to come back to the Premier League, especially at a club as big as Villa, is fantastic and it's an opportunity for me to work with the gaffer and his staff again as well," Holt said.
"We all know this is a club in transition but we're making progress this season. We've got a lot of young lads at the club who are doing fantastic and I'm really delighted to be a part of it and to be able to lend a hand," he added.
(Reporting by Mark Young, editing by Ed Osmond) nL3N0KO4CL
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