The Premier League champions travelled to Andalusia in wretched form and looked to be on their way to a significant defeat as Sevilla dominated the first half and opened up a two-goal lead in the 62nd minute – Joaquin Correa atoning for a penalty that Schmeichel saved by adding to Pablo Sarabia's opener.
But Vardy pulled one back 17 minutes from time to give Leicester a lifeline in the last-16 tie and Schmeichel believes that goal gives them a real chance at the King Power Stadium on March 14.
"The away goal's massive," the Dane told BT Sport. "That was a something that we hoped we could get because going to the King Power anything can happen.
385 - After 385 minutes, Kasper Schmeichel has conceded his first goal in the Champions League. Costly.— OptaJoe (@OptaJoe) February 22, 2017
"It's a joy to play in these games, every player was looking forward to it, everyone ran their socks off and worked hard.
"We were up against a very good side, but going in, we were all about us, how much we were hurting from this season.
"We wanted to put in a good performance. We lost the game and we're disappointed but they are very, very good and 2-1 away from home in the Champions League is a good result.
"We've lost the game. We're disappointed; we're not celebrating, definitely not celebrating. But 2-1 away from home in Champions League - we'll take that."