The Premier League encounter at King Power Stadium garnered a lot of attention after referee Jonathan Moss awarded questionable penalties to both sides and gave a second yellow card to Vardy for simulation in the penalty area.
While Vardy's second booking has divided opinion in the media, Hodgson felt it was a harsh decision against the surprise league leader's top scorer.
“Vardy got sent off at the weekend. But again, I will go out on a limb. I don't see that as a dive. I don't think it was a penalty either,” Hodgson told British media.
“There was a very slight contact with the defender. He (Vardy) went down because he was unbalanced. I don't think he was trying to dive. I sympathise with him. He was very, very unlucky.”
Vardy has since been charged by the FA with improper conduct for arguing with Moss, while Leicester have also been charged with failing to control their players.
“He hasn't just said to the ref, 'that is all right, I understand' and shakes hands and have a good game. He has called him a few names. But he is a human being and that can happen,” Hodgson said.
Hodgson added that several of the more volatile players in his squad for the Euro 2016 finals, including captain Wayne Rooney and Tottenham midfielder Dele Alli, will need to be on the best behaviour in the June-July tournament in France.
“I think it will remain good but I can't guarantee you a Vardy, a Rooney or an Alli, or anyone else for that matter, is not going to do that,” Hodgson said.
England face Russia, Slovakia and Wales in Group B of the 24-team tournament that starts on June 10.
Original source: Hodgson leaps to Vardy's defence