The Brewers - a non-league club until the 2009-10 season - finished second in League One this term to clinch promotion to the Championship.
Clough told BBC Radio Derby: "It is frightening, but exciting as well.
"We will be underdogs in every game we play and favourites for relegation."
Clough, who returned for a second spell in charge in December, first managed Burton in the sixth tier of English football in 1998.
He said the size of the club, and town, meant surviving against teams like Newcastle, Aston Villa and Nottingham Forest would be incredibly tough.
"We have to find people who will want to prove people wrong," the 50-year-old added.
"It will be daunting but we will have to use everything we have used in League One to play like the underdog and try to attract characters that will embrace the sort of season it will be here.
"To come from crowds of 500 or 600 around 17 years ago, and to grow that ten-fold is remarkable in itself. It's not the biggest town - maybe about 70,000.
"This is a much more local fanbase and that makes it nice as well. Fans will get to experience Championship football, something they never ever dreamed of."
You can hear a full interview with Burton Albion manager Nigel Clough by clicking this link.
Boss Nigel Clough has admitted playing in England's second tier for the first time in Burton Albion's history is "daunting", but says they will embrace the challenge of being underdogs.