The Canadian comedy show, which stars Levy and his father, Eugene Levy of American Pie fame, came to an end earlier this year after six series.
It follows the once-wealthy Rose family who are forced to flee to the fictional town of Schitt’s Creek – which they purchased as a joke – after they lose everything.
Speaking to David Tennant on his podcast, Levy said: “Originally, I was going to end the show after Season 5. Then we were given the option to have Seasons 5 and 6.
“Knowing that we had those two seasons locked in allowed for a really thoughtful approach to, hopefully, winding things down in a way that felt really motivated.
“I’m a big fan of shows that leave a great, lasting taste in your mouth… For us it was about wanting the legacy of the show to be something joyful for people.”
The series was created and written by Daniel and Eugene, who play father and son duo David and Johnny Rose on screen, with sister Sarah also starring in the series as waitress Twyla Sands.
Actress Catherine O’Hara is Moira Rose, family matriarch and fallen actress, while Annie Murphy plays ditzy daughter Alexis Rose.
Daniel also spoke to Tennant about whether he felt an expectation to tell gay stories.
He said: “The great thing about the show and what I’ve always wanted to do is just be as inclusive as I possibly can, include characters that represent my life in a way that doesn’t feel like there has to be a lesson learned.
“I think the casual nature of including people is what we need more of, just generally in television, without having to make the gay characters the butts of the jokes or the punchline.
“I will always have queer characters in whatever I continue to write because that’s important to me. It’s such a necessary conversation to have.”
“People need to see themselves reflected on television screens and I think we’re realising more and more that there are so many people who have not seen themselves on television.”
The series, currently airing on Netflix, has scored 15 Emmy nominations.
Other guests featuring in the second series of David Tennant Does A Podcast With… include The Handmaid’s Tale star Elisabeth Moss, Succession actor Brian Cox and Vera’s Cush Jumbo.
