Claudio Ranieri's men now head into Christmas as top of the pack, two points ahead of second-placed Arsenal after 17 games.
Five of the last six teams who have topped the league at Christmas have gone on to lift the trophy come May.
"We are underdogs at the moment and people are waiting for us to fail. They are waiting for us to drop off and that keeps helping us to push and battle for every point in every match," Dyer told British media.
"At the moment we are on cloud nine and, hopefully, we can stay there. It feels great to be top. The boys are playing really well at this moment in time.
"Everyone is together which helps massively. When you have confidence the sky is the limit really.
"This is a little bit crazy but, at the same time, it is keeping the buzz going and every day in training the lads are playing with a smile on their faces.
"It's better this season than last season so we can't complain."
Leicester travel to take on Liverpool on Saturday, before taking on third-placed Manchester City on Dec. 29.
(Reporting by Shravanth Vijayakumar in Bengaluru; editing by Sudipto Ganguly)
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