"I've been called so many things in my life. I am so used to being called names, but a 'racist' is one I will not take," Osbourne said, to which Maher replied, "It's an insult if you're not one."
"I'm doing just fine," Osbourne said. "What about the people that are cut from the knees down who can't afford to get lessons now on what's politically correct? What happens to them? It's not fair. It isn't about being a racist. It's maybe not knowing what is correct and woke for your language that day. It changes from day to day what is correct."
Osbourne, 68, was the last original co-host of the show when she exited in Season 11 after engaging in a heated, on-air discussion about race with her fellow panelist, Sheryl Underwood.
CBS announced last month that Osbourne would no longer appear on the series.
"The events of the March 10 broadcast were upsetting to everyone involved, including the audience watching at home," the network said in a statement Friday.
"As part of our review, we concluded that Sharon's behavior toward her co-hosts during the March 10 episode did not align with our values for a respectful workplace. We also did not find any evidence that CBS executives orchestrated the discussion or blindsided any of the hosts."
During Maher's chat with Osbourne, he laughed as he categorized the disagreement as "the tragic events of 3/10."
"On your ironically titled show, The Talk, you were talking and, if there is one lesson from this, it's that's not allowed any more," Maher joked. "On your show, I don't think anything happened."
After the on-air spat with Underwood, several other people came forward to accuse Osbourne of making culturally insensitive remarks to and about her co-stars.
Osbourne posted an apology on Twitter after her March 10 interaction with Underwood during which Osbourne defended her friend, broadcaster Piers Morgan's right to criticize Prince Harry and Meghan Markle's complaints about being mistreated by the British royal family.
"To anyone of colour that I offended and/or to anyone that feels confused or let down by what I said, I am truly sorry. I panicked, felt blindsided, got defensive & allowed my fear & horror of being accused of being racist take over," she Osbourne wrote in her tweet.