West Ham won all three of their games in October as Allardyce's side have started the season quickly, with Sakho finding the net regularly.
The Hammers currently sit fifth in the Premier League table after Allardyce's side have made a very strong start to the season.
During the month of October, Allardyce's side beat champions Manchester City at the high point of a very good month for his side, with Sakho playing a significant part in front of goal.
Allardyce told the West Ham website: "We all enjoy life more when we're winning football matches and certainly life has become that little bit easier for us all in recent weeks, with the reward being a very nice trophy.
"The pinnacle of October was obviously beating Manchester City, but the most important thing was being able to put away two teams we were expected to beat in QPR and Burnley. Because we did that, we had the platform to go into the Man City game with confidence and the impetus to beat the champions."
Sakho scored four goals as he an Enner Valencia continued their formidable looking partnership, and admitted there was a degree of surprise that he had been given the award.
On receiving his award, Sakho said: "I'm a bit surprised and I'd like to thank everyone who has helped me along the way, especially here, and also earlier on in my career at Metz. At the start it was a bit hard but that makes me even happier now that I've managed to win this award and the most important thing is to help the team to continue to do well."
The Hammers will be hoping to continue their good form in the Premier League this weekend when they take on struggling Aston Villa at Upton Park this weekend.
Sakho missed last weekend's 2-2 draw with Stoke City after sustaining a shoulder injury against Manchester City, but Allardyce said yesterday he could be considered for tomorrow's clash.