The 29-year-old striker joined Forest on a season-long loan deal from Championship rivals Brighton & Hove Albion in the summer transfer window.
The Englishman made his debut for the Reds against QPR at Loftus Road in the Championship on Saturday afternoon.
Former Forest midfielder Hodge was following the match for BBC Radio Nottingham, and he was impressed with the performance of O’Grady.
"He's not going to get a bag of goals but he was outstanding in bringing others into play." - Steve Hodge full of praise for #NFFC's O'Grady— BBC Nottingham Sport (@BBCRNS) September 12, 2015
"He looks top draw. With him and Oliveira up front #NFFC have so many options." - Steve Hodge on O'Grady and his strike partner, 2-1 Forest.— BBC Nottingham Sport (@BBCRNS) September 12, 2015
O’Grady started the game against Rangers and played for the entire 90 minutes, as Dougie Freedman’s side won 2-1.
After a goalless first half, QPR took the lead in the 65th minute when Charlie Austin found the target from 20 yards.
Forest staged a strong comeback thereafter and equalised 10 minutes later through Henri Lansbury.
Goalkeeper Robert Green was sent off for bringing down O’Grady inside the QPR penalty box, and midfielder Lansbury made no mistake from the spot.
Over the course of the 90 minutes, O’Grady created five chances, had a pass accuracy of 72% and a shot accuracy of 50%, and won 10 headers and three dribbles.
Hodge was also impressed with the performance of attacker Ryan Mendes, who joined Forest from Ligue 1 outfit Lille on a season-long loan deal earlier this month.
The 25-year-old Cape Verde international featured for the entire 90 minutes against QPR on Saturday, creating three chances and winning three tackles in the process.
"He's arrogant and confident in the right way, his quick feet are far too much for Perch." - Steve Hodge on Mendes' bright start, 0-0. #NFFC— BBC Nottingham Sport (@BBCRNS) September 12, 2015
Forest are back in action this evening when they take on Birmingham City away from home at St. Andrew’s Stadium in the Championship.