The Lions reunite with their Bavarian counterparts 42 years on from their showdown in the 1981-82 European Cup final, where a Peter Withe goal propelled Villa to a 1-0 win en route to their first and only top-level continental prize.
A rematch of that encounter in De Kuip takes place in midweek, where Unai Emery's men host Vincent Kompany's side in the West Midlands, and Dunne feels that the Villa Park atmosphere could potentially intimidate the visitors.
"Like all the English clubs, the home stadium is something that can make a difference for them. The big Champions League nights at Villa Park will be something special this season," Dunne told Sports Mole.
Villa and Bayern went in different trajectories following that encounter in Rotterdam, though, as while Bayern have largely been the dominant force of German football for the past four decades, Villa only returned to the Premier League in 2019.
Villa, Bayern among big winners on Champions League matchday one
However, the Villans have been a team transformed since the arrival of ex-Arsenal, Paris Saint-Germain and Sevilla boss Emery, who led his side to an unexpected fourth-placed finish in the 2024-25 top-flight campaign behind Arsenal, Manchester City and Liverpool.
Villa had the honour of playing in one of the first two Champions League games of the 2024-25 season, kicking off the new format with a strong 3-0 victory over BSC Young Boys courtesy of strikes from Youri Tielemans, Amadou Onana and Jacob Ramsey.
The Lions have also taken a respectable 13 points from their first 18 on offer in the 2024-25 Premier League, although their three-goal success in Switzerland paled in comparison to Bayern's astonishing feats on matchday one.
Kompany's side assumed top spot in the 36-team league phase table with a 9-2 annihilation of Dinamo Zagreb, in which Harry Kane scored four goals, and the Bavarians are also first in the Bundesliga with 13 points from their opening five games.
Following the visit of Bayern, Villa will pit their wits against Bologna (H), Club Brugge (A), Juventus (H), RB Leipzig (A), Monaco (A) and Celtic (H) in their other league phase contests, and Dunne is anticipating a rough ride for his former side.
Dunne backs crucial Villa star to "trouble" Bayern
However, the ex-Republic of Ireland defender - who made the 2009-10 PFA Team of the Year while playing for Villa - believes that hotshot striker Ollie Watkins is capable of terrorising any European defence on his day.
"I think it'll be really exciting. It's difficult because of the fixtures they've got, the amount of extra games they'll have at such a high level is going to make it difficult for them," Dunne added.
"What's their preference, the Premier League and Champions League? It's going to be an amazing experience for the fans, and because of the players that they do have, when they've got a full-strength squad, Ollie Watkins up front and people with a bit of pace they can cause trouble to teams."
Watkins scored one and set up another in Villa's 2-2 Premier League draw with Ipswich Town at the weekend, while Bayern's Kane - his superior in the England squad - suffered an injury scare in his side's 1-1 Bundesliga stalemate with Bayer Leverkusen.
However, the German side are reportedly confident that the Three Lions captain will be fine to face the Lions, whom he has netted eight goals in 13 previous games against.
Richard Dunne was speaking to Sports Mole on behalf of Heart Bingo.