The 23-year-old is already on his third major club, having left Manchester City to join Chelsea but flourished at neither, and that has raised questions about everything from his quality to his temperament.
Sturridge is likely to get more of a chance under Brendan Rodgers than he had at his previous employer but Gerrard said, at some point, the player had to realise his situation and turn potential into regular goals.
"Daniel has the quality. I know he's got it - I've seen it," said the England captain.
"He's suffered a bit at Manchester City and moved on to Chelsea where he hasn't played as much as he wanted but has shown flashes of brilliance.
"I think he's at the age now when he needs to settle down, get a settled club and show consistently what qualities he's got.
"If he can start producing that for us on a weekly basis he can help this club move forward to where we want to be.
"He has said he wants to play football for a big club, the stage is set for him. There will be no excuses for him. He will be playing with good players at a great club.
"It's all there for him. He just has to go and grasp it with both hands. He's at an age now where he should be performing week in week out."