Sexton led the Blues to FA Cup glory in 1970 and secured their first European success in the Cup Winners' Cup the following year.
Bobby Robson and Dave Sexton in Mexico
His managerial career began at Leyton Orient and from there he moved on to Chelsea, before enjoying spells in charge of QPR, Manchester United, the England Under-21 team and Coventry.
The Football Association's director of football development Sir Trevor Brooking said: "It is a sad day for English football.
"Anyone who was ever coached by Dave would be able to tell you what a good man he was, but not only that, what a great coach in particular he was.
"In the last 30-40 years Dave's name was up there with any of the top coaches we have produced in England - the likes of Terry Venables, Don Howe and Ron Greenwood.
"His coaching was revered."
Sexton had two stints in charge of England Under-21s, first leading the team to back-to-back European titles in 1982 and 1984 during a 13-year reign which ended in 1990 and then returning to the helm between 1994 and 1996.
A former player with Luton, West Ham, Leyton Orient, Brighton and Crystal Palace, Sexton was awarded an OBE in 2005 for services to football.
Chelsea later released their own tribute statement to Sexton.
"Chelsea Football Club would like to express our enormous sadness and send our deepest condolences to the family and friends of Dave Sexton who has died aged 82," the statement read.
"Sexton is without doubt one of the greatest managers in Chelsea history having led the club to our first FA Cup in 1970 and the Cup Winners' Cup a year later - our first European trophy."
Sexton took charge at Stamford Bridge in 1967 and led them to their first ever FA Cup triumph three years later.
The Blues followed up that success by beating Real Madrid in the Cup Winners' Cup final in Athens the following year. He remained in charge of the club until October 1974, and subsequently had spells at QPR and Manchester United before his role in the national team set-up.
Peter Bonetti, the Chelsea goalkeeper during the Sexton era, told chelseafc.com: "He was fantastic, I've got nothing but praise for him.
"He passed away peacefully last night. I've spoken to his wife and it's come as a complete shock because he was such a lovely man.
"Everybody loved him and everybody respected him here at Chelsea and he will go down in the club's history as being such a fantastic guy who brought us so much success.
"He was a football fanatic, it's so sad and I really can't believe it.
'Everything he did was fantastic, the fact we won the FA Cup in 1970 was a big memory."