The United legend replaces Paul Wilson, who has gone to Doncaster, and the former striker who became a hero for the Iron between 1987 and 1993 has set himself a number of targets.
Daws told the Scunthorpe Telegraph: "I had five and a half happy years at Scunthorpe.
"It was the best time of my career as a player and I really enjoyed it.
"I'm really fortunate that I have now got the opportunity to come back."
Daws gave up a role at Sheffield Wednesday's academy to come back to Glanford Park, something he is relishing.
"I was excited at the prospect and delighted to get the job," added Daws.
"It's a great opportunity for me, I want to move things forward and I am really looking forward to it."