Vardy scored a brace to help Leicester City pull off another comeback having been 2-0 down to Southampton on Saturday.
It took his tally for the season to nine, form which has seen him called up for the last two England squads.
'He sets the tone'
Speaking on Sky Sports' Monday Night Football show, Neville lavished praise on the former non league star.
"He epitomises Leicester at this moment in time," Neville said on MNF.
"He's thrilling to watch.
"He sets the tempo and the tone for the rest of the team when you've got a centre forward who is willing to put the work in he has."
Vardy finds new level
Neville, who has seen Vardy at close quarters during is time with England for the last two Euro 2016 qualifiers, also highlighted why he thinks the ex-Fleetwood Town forward has improved so markedly this season.
"What he's added this year is a higher level of technical ability the confidence and belief is there and obviously with that comes the goals," Neville added.
"He's in fantastic form, he scores all types of goals.
"He's had an outstanding start to the season. He gives no other player behind him any excuse for not working hard."
Statistics speak for themselves
The stats certainly back up Neville's comments.
Vardy has the most goals in the Premier League with nine, the most shots on target with 17, the best shots to goals conversion rate of 30%, the most touches in the opposition box with 66, the most chances created with 15 and has won the most tackles with 13.
A remarkable set of stats which prompted Neville's fellow pundit Jamie Carragher to question why England had played him out on the wing.
It brought a wry smile from Neville who pointed out the Three Lions had players like Wayne Rooney and Harry Kane to accommodate as well.