The former England boss thinks the current head coach should have kept quiet until a decision was made.
The Chelsea defender has been cleared in court of allegedly using racially abusive language towards Anton Ferdinand of QPR, but the FA has re-launched its own investigation into the incident.
The current Three Lions boss, who has already insisted Terry's international career is not over, has now indicated that he hopes the Blues' man will be cleared once more, despite the new inquiry being held by his employer.
Taylor admitted he was shocked by the former West Brom manager's decision to talk openly about the case, stating his belief that Hodgson shouldn't have commented until a conclusion is found.
"I was surprised that Roy said that," Taylor told the BBC. "He shouldn't be getting involved in any comment on that until a decision [by the FA] has been made. I don't think it was a good thing for him."
The England head coach has also come under criticism from awareness group Football Against Racism due to his support of Terry.
Piara Powar, executive director of the organization, was unhappy that Hodgson, who works for the FA, spoke in favor of a party concerned by an ongoing investigation, suggesting it brings the governing body's impartiality into question."Hodgson's comments on Terry are foolish. It is not helpful to the process the FA has undertaken in any way," Powar said. "The England manager is employed by the FA, who have a dual role in running the national team and being the governing body. Whatever support Roy Hodgson wants to give to a member of his squad, he also has to remember the FA's wider role.
"For the England coach to go public with his view like this calls into question that dual function."
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