The 44-year-old arrived at Anfield last month following three impressive seasons with Bournemouth, having previously confirmed in April that he would leave the Cherries at the end of the campaign. His spell on the south coast ended on a high after steering the club to its first-ever qualification for European competition.
Although his Liverpool agreement is shorter than the lengthy contracts often handed to elite managers, it follows a pattern that has been consistent throughout Iraola's coaching career.
The Spaniard succeeds Arne Slot, who was dismissed on 30 May after Liverpool finished fifth in the Premier League, one position above Bournemouth.
Addressing supporters, Iraola said his priority is to build "a team they can be proud of", while insisting he is ready to shoulder the expectations that come with managing the Merseyside club.
He also recognised the importance of reconnecting with the Anfield crowd after fans voiced frustration over Liverpool's lack of attacking spark last season.
Iraola said the team must earn the supporters' enthusiasm through its performances, creating an atmosphere where the fans respond with the passion for which the stadium is renowned.
"I think football and especially Liverpool is about connecting - connecting with the people, connecting with our supporters," he said at his first media conference since being appointed.
"I've been on the other side of it at Anfield. I've experienced the goal that [Federico] Chiesa scored on the first day of last season [Liverpool's winner v Bournemouth].
"You can feel the stadium and I would love to have this every time we play - but that has to come from us, from inside the pitch.
"We have to be a team that works hard - is intense, aggressive, and vertical - so everyone can identify and everyone can feel comfortable supporting this team."
"I'm ready for it. I understand this is a massive club," he added.
"Everything I say now is going get the biggest scrutiny. You have to be very aware of the mistakes but I wouldn't like to be too careful. I would like to act quite normal.
"I'm not going live in my bubble - just at the training ground and home. I would like also to go to the city, experience the city. I know some places I would like to take some pictures of.
"It's part of the magic of being the Liverpool manager and I would like not to change too much."
Before his successful Bournemouth spell, Iraola managed AEK Larnaca in Cyprus, as well as Spanish sides Mirandes and Rayo Vallecano.
Manchester United have confirmed the signing of Andrey Santos from Chelsea, while the Red Devils are also closing in on a deal for the transfer of Youri Tielemans from Aston Villa.
Jurgen Klopp has revealed the extraordinary lengths Liverpool went to in their failed attempt to sign Kylian Mbappe from Monaco in 2017, describing the pursuit as the club's "most expensive non-transfer."
Crystal Palace have completed the signing of Spain international defender Oscar Mingueza on a free transfer from Celta Vigo, with the move subject to international clearance.
Arsenal have strengthened their goalkeeping options by signing French goalkeeper Illan Meslier on a free transfer from Leeds United.
