Garry Thompson's impressive strike sealed a 1-0 win over Rochdale on Glanford Park, with the three points enough to move Scunthorpe out of the relegation zone.
"There is relief all round. When you look at the other results for teams down there around us, this was a great result for us," said Knill.
"And I think we deserved it. There was not much to choose between the two teams in the first half because we cancelled each other out.
"I thought we did much better in the second half and it was a great goal by Garry Thompson that won it for us. It helps give us confidence and gives us something to build on.""
Knill was delighted with the performances of January signings Jamie Reckord, David Mirfin and Jon Parkin.
The performance of Parkin, on loan from the Championship side Cardiff City, impressed supporters the most.
"He has a terrific work ethic and it just shows you what you can do when you have that," added Knill.
"He pleases the crowd, he pleases the players and he pleases everyone in the club."
Rochdale dropped to the foot of the table after the defeat,. Dale boss John Coleman claimed he had been too positive with his team selection.
"I should have realised that the pitch was a difficult one to pass on and the way Scunthorpe set5 themselves up as a team," he said.
"We should maybe have gone more difrect but I like my teams to play football the right way.
"The most disappointing thing is we have given a shot in the arm to one of the teams down there with us."