The 37-year-old recording artist discussed the situation during Wednesday's episode of Watch What Happens Live. Last August, Lambert unintentionally shared a video of Smith saying he doesn't like Michael Jackson.
"It wasn't that deep. It was like a little sliver of a bigger conversation," Lambert said of Smith's remarks.
"Yes, we still are friends. That was not that deep," he added. "But you know how the media is. They love a story that doesn't exist."
Lambert deleted the video after it went viral. He subsequently defended Smith in an interview with People, saying the singer's comments were taken out of context.
"We had been out at sea all day! We had had some champagne!" Lambert said. It was "a segment of a conversation we were having. I went, 'Ooh, that doesn't sound right out of context; I'm gonna take this down.'"
"The poor guy -- now people are jumpin' all over him! And it's like, look: The guy is entitled to his opinion," he added of Smith. "And also: It was a sliver of a fuller conversation that was actually quite interesting. I think people need to give him a break."
Lambert, who sings for Queen + Adam Lambert, also discussed his performance with the band at the Oscars in February.
"I downplayed it in my head because I didn't want to get psyched out," he said. "I played it cool and then I started looking around and that kind of wigged me out a little bit."