I just got my CFI a few months ago and for the years leading leading up to instructing and even after getting it, I wondered the same question. You kind of come into it, for me I didn't really develop my teaching skills until I actually started teaching and even now I'm still and will be developing it for the rest of instructing career. Don't do something for the fear you won't succeed at it, get it and give it your best damn swing.
This is spot on. I had the same reservations as the OP about whether or not I was going to be good at this teaching stuff. It's a HUGE responsibility for sure, but don't let any fear hold you back from pursuing this.
As coks said, your actual teaching skills won't be developed until you start doing the real thing. CFI school and the CFI checkride are one thing, teaching actual students is an entirely different matter. You may find that once you get to this point in your training (as a CFI candidate) that for the most part, teaching actual students is actually easier than 'teaching' a CFI or examiner. You're not really 'teaching' your CFI or the examiner/inspector. You're presenting to them. They're having to play 2 roles: they're acting as a 'student,' to throw in some kind of realism, as well as an instructor to assess your depth of knowledge and teaching abilities. Their job is to steer you in the right direction, and mold you into a teacher. If you have a CFI that's just wanting to prepare you for the CFI checkride, and not actually teaching you how to teach, then my advice is to steer clear of that person and go find a better CFI who really challenges you and holds you to a higher standard than just the 'checkride.' Because as I said, there is an enormous amount of responsibility on the part of the CFI. You are teaching somebody how to not kill themselves. And there is so much more to this job than just the checkride.
I like teaching, it's a lot of fun. I make it fun for my students. I do plenty of ground school, and it's pretty thorough. They in turn like and appreciate that. Teaching your students in the classroom first is extremely important. Don't try to 'teach on the go' and neglect ground school. Ground training is crucial. I've seen plenty of CFI's that just want to hop in the airplane and go log some hours and skip ground with the student. Don't do that. I've already picked up several students that were coming from other flight schools that weren't happy with the quality of their training, and the problem always seems to be that their previous CFI never wanted to do ground.
I love this job. Honestly I never thought I would love it as much as I do. It was a little overwhelming at first, I won't lie, but you eventually get past that. At the same time, I can't do this job forever, the pay just won't allow it. I want to eventually move on to better things. So I'm also a 'time builder' as well. If you're going to be a CFI, enjoy this stage of your career.
Look at this career as a journey, not a destination. Take it seriously, hold yourself to a high standard, hold your students to high standard, and be patient with them at the same time. Plenty of corporate and airline pilots have told me that flight instructing was the best kind of flying they've ever done. Don't 'Rush' to go off to the airlines or whatever. Your flight hours will come. Many students are quick to pick up on that mentality with instructors. I've had a few timebuilder CFI's who were awful. They shouldn't even be teaching. They acted like they didn't give a crap about teaching. They complained a lot. More than likely, they will complain about ANY job they get in aviation. On the other side of the coin, I've had some timebuilding CFI's who were really good! It's really the personality of the individual that makes the difference.