Lucas made an impressive return to action in Saturday's 1-0 win over Southampton.
"Lucas is the holding pivot of the three in the midfield and his presence just releases Joe a little bit further forward," Pascoe explained to Liverpoolfc.com. "On Saturday you could see this in the way Joe was pushed up 10, 15 or 20 yards further forward.
"And I would say this [advanced position] is Joe's natural position because he likes to get forward. He can take players on, he's got a great shot and he can score goals. But if you ask him to play in the holding role, he'll do that as well.
"Around the penalty area, Joe can dribble, he can shoot and he can play in that more advanced position, knowing he has the security of Lucas behind him."