The 48-year-old actress and television personality said on Wednesday's episode of Watch What Happens Live that she "loved every second" of Williams' time on the Fox reality competition.
The Masked Singer is a singing competition featuring celebrities in elaborate costumes that hide their identities. Williams was unmasked as the Lips during last week's episode.
"First of all, Wendy was a hoot, and that's one of the reasons what I love about the show is you just never know who you're going to get," McCarthy said.
"It's not just a singing competition; it's an entertainment show. So the fact that she came out exactly like you thought Wendy Williams would, I loved every second of it," she added.
Williams had appeared to shade McCarthy while being questioned before her unmasking. When asked if she always wanted to be a giant pair of lips, Williams said, "Why not? They're sexy and when I do get my filler, they're this big before they deflate." Williams then said McCarthy knew what she was talking about, insinuating McCarthy also gets lip fillers.
On WWHL, McCarthy said she didn't take offense at Williams' comment.
"People said she threw shade at my lips. I didn't even take it as shade, because I don't put anything in my lips. But, bring it. I've heard way worse than stuff about my lips," she said.
McCarthy also weighed in on The Real Housewives of Orange County Season 15. McCarthy said she thinks Shannon Beador is "guilty" of calling Gina Kirschenheiter's house "sad."
"I think she meant it in a way of like, small," she said.