The Three Lions have now gone eight games undefeated since their disappointing World Cup campaign in Brazil and sit comfortably in charge of their Euro 2016 qualification group.
But on Tuesday night they drew their first game of the season against Italy in Turin, and Hodgson says their unconvincing first-half display highlighted areas for improvement.
Captain Wayne Rooney in action against Italy
Hodgson experimented with five changes to the side that beat Lithuania at Wembley on Friday night, and his charges found themselves a goal behind at the break after Graziano Pelle's glancing header.
“We are trying to consistently hone what we have been doing and we are getting such a good response that I do feel there is some progression," said Hodgson.
"But as you saw in Italy, we still can’t turn it on as I would like, otherwise we wouldn’t have had a first half like we did, which I was not at all satisfied with.
"Happily we got back on track, got our minds attuned and played the football we wanted to play in the second half.
"Until we can just go onto the field and it’s in our backbone to knowing exactly what we want to do with the ball and without the ball, there’s a lot of work still to do. Not only from the staff, but also from the players.”
Highlights: Italy 1-1 England
One of the catalysts for England's second half resurrection was the introduction of Manchester United's Michael Carrick just before half-time.
Replacing his club-mate Chris Smalling, who went off ill, Carrick slotted into the holding midfield role, with Phil Jones moving into the back-four, and added a level of calmness to England's game.
It was only his second outing in a Three Lions’ shirt since October 2013 – he also played the full 90 minutes against Lithuania last week – and his performance impressed Hodgson.
And with Jack Wilshere – currently out with an ankle injury – also playing well in the same position earlier this season, the manager admits he may have a tough decision to make over who will be his first choice when they meet up again in June.
Hodgson added: “Michael has got competition because Jack Wilshere – who some people made our best man in our matches in the autumn – I am sure will have something to say.
Michael Carrick applauds the fans in Turin
“But I have always been an admirer of Michael Carrick and I’m delighted to see him back.
“If both of them are fit I might have to either find some way of tweaking the formation or pick one of them and that would be tough.”
Hodgson also revealed that he caught up with Wilshere ahead of the trip to Turin.
He said: “I spoke to Jack at the Arsenal training ground the other day and he was very, very positive.
"I think he was planning to play 45 minutes. He’s pretty confident that he’s going to be okay."
Highlights: England 4-0 Lithuania
With next year’s European Championship his main focus, Hodgson says he is trying to build a team which can mount a serious challenge in France.
This season he has used 32 players, including five debutants, in England's eight games.
And with five more Group E matches and at least half a dozen friendlies to play before the tournament begins, if England qualify Hodgson reckons his first choice side may well look a little different to what it would today.
"It is changing all the time because people are coming in. I am really pleased to say the squad is getting stronger and I would like to think we will be capable of using all these players in the right way,” he said.
Roy Hodgson is pleased with the progress of his team
“When you think there are so many more players capable of competing with these boys, that has got to be something positive.
“If I was to pick a team today to play in the first game in France, of course I would have a team in my head.
"But I would be very foolish to start talking about that 15 months before we are due to play and secondly we haven’t even qualified.”
