Stanton, 29, was a free agent after leaving Rochdale in the summer, having spent four seasons at Spotland following his release by the Iron.
Paul Peschisolido, the Brewers manager, hailed the signing as a good addition to his side.
"Nathan was a player we admired last season in a very good Rochdale side" he told Burton's official website.
"He brings steel, experience and pace to our side and I feel that things are really starting to come together now."
Stanton said he had left Rochdale as they were only prepared to offer him a 12-month contract.
"I was looking for a two year deal and they [Rochdale] could not offer me that so I thought it was time for me to move on," he said.
The manager here impressed me a lot. The facilities here are second to none and that was a major factor in me deciding to come."
Stanton made a total of 276 appearances for the Iron after coming through the club's youth scheme. He represented England at schoolboy level.
He struggled with injuries and was released by then manager Brian Laws in 2006.