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Premier League champions City face Barca over two legs later this month, with a place in the quarter-finals of Europe's elite club competition at stake.
The Catalan club triumphed 4-1 on aggregate when the sides met at the same stage of the Champions League 12 months ago, with Lionel Messi and Dani Alves both scoring in each leg.
However, Caballero insists City have learned their lessons from that tie and also feels Barca are not the team they once were, highlighting recent negative press coverage in Spain as evidence of their decline.
The former Malaga keeper told Marca: "It'll be tough, as these games always are. City have learnt from last year and I hope we go into the first leg on top form.
"The aim is to play better than we did last time and reach the quarter-finals."
Asked if Barca's fear factor had disappeared, Caballero added: "I think so. Especially because of everything that is being said in Spain about Barcelona.
"The team isn't as strong as in recent years. That helps us and makes us feel stronger.
"Small things become crises at big clubs. They have to live with the fact that people speak about Barcelona all the time. I'm sure that not even 20% of what is said is true."