The 22-year-old came up against Modric as Wales were defeated 2-0 by Croatia on Tuesday night, and has faced the burden of expectation since his summer move from Swansea.
Allen has conceded that the former Tottenham man is currently a cut above the rest, but believes he can offer plenty more for club and country.
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"Modric is some player," he told The Sun.
"I think he showed me that I have still probably got quite a lot of work to do in order to get anywhere near his level.
"He's a top player, but for me personally it was disappointing because he controlled the game and was comfortable throughout."
And Allen says he is still getting used to playing at Anfield, where goals have proved hard to come by so far this season, but believes that high expectations can be expected.
"It's all very new to me. The price tag is going to add pressure, that is something you come to expect as a footballer," he added.