The midfielder is available for selection after serving a three-match suspension for breaching SFA betting rules.
Kyle claimed that punting was rife within Scottish football after the allegations against Black came to light last month and is confident the 28-year-old will be a key part of McCoist's plans once again. He said: "I don't think Ally will have any problems playing Blackie this weekend.
"In the first few games this season, Rangers were very good with Blackie and Nicky Law in the middle of the park.
"They seemed to form a good partnership in the formation Rangers were playing and the fans got to see the real Ian Black.
"He didn't have the best season last year but he has settled in and I think he has found his feet.
"I don't think the manager will doubt him. It is the quality that counts and Ian Black has that in abundance.
"The gambling thing is a mishap in his career that he will look back on and think, 'what the hell was I doing'. But we have all done it.
"He will come back and do well for Rangers."
While Black is set to come into contention for the Gers' League One clash with Stenhousemuir this weekend, his former Hearts team-mate Marius Zaliukas will not be pulling on the Light Blue jersey after he turned down a deal at Ibrox.
Boss McCoist was keen to add the Lithuanian to his squad to bolster his defensive options.
But Kyle reckons his former Tynecastle team-mate is a luxury the Gers can manage without as they look to extend their perfect league start this weekend.
Kyle said: "At the end of the day you have to look at the league Rangers are in. Do they really need Marius Zaliukas to win League One?
"I wouldn't say so. Marius has probably taken into account the league Rangers are in.
"It was different for myself going there at 32, it was hard to say no to Rangers.
"But Marius is only in his late 20s and maybe still has aspirations to play at a higher level than that.
"Rangers have got enough in their locker to see off the competition this season."