Carlson, who is currently in quarantine in Sydney, is from New Zealand but thinks she will be "pretty good" at guessing the celebrities behind the masks on the show.
Jackie O said to her: "When Lindsay was on, she was always thinking it was someone a bit bigger than what it was, like a really big international star."
But Carlson said she wouldn't be making similar guesses.
"I'm familiar with Channel 10's budget," she said. "I'm gonna be a little bit more realistic I think."
In a statement released by Channel 10, Carlson added: "I'm pumped to do the show, but I'm also upset that Lindsay can't be the other panellist. But for anyone who is at home and angry, think about this - I have to wear her wardrobe because they've already spent the money, so they are just putting in a few clips for me. Spare a thought for me, and tune in just for that, and the amazing talent under the masks!"
Channel 10 recently confirmed that Lohan wouldn't be returning for the second season of the show due to Covid-19 travel restrictions.
"Due to the current international travel complications Lindsay Lohan will not be a panellist on The Masked Singer this season," Channel 10 said in a statement.
"While we are disappointed that Lindsay can't join us, we are lucky enough to have a sensational new panellist on the desk for this season. They will join Jackie O, Dannii Minogue and Dave Hughes, along with 12 new celebrities and 12 new masks."
Hughesy later told Hit107's Bec and Cosi that Lohan was upset that she wouldn't be a part of the show this year.
"She's not happy about it, and fair enough, but she understands," he said.
In May, Beverly McGarvey, who is ViacomCBS Australia & New Zealand's Chief Content Officer and EVP, told news.com.au that The Masked Singer would be forced to make some major changes due to Covid-19.
"The Masked Singer won't look like it did last year, it couldn't possibly, but we might find some ways to do things a bit better than we did last year," McGarvey said.
McGarvey did confirm that they've locked in "some very exciting celebrities" to be the singers and teased: "The other really interesting thing is there's a lot of (high-profile) people in Australia at the minute who normally wouldn't because everyone's come home to hunker down."