Hudson-Odoi made his first start for the Blues since April during Wednesday's Carabao Cup tie with Grimsby after recovering from a serious Achilles injury.
"I know Callum's talent and he's got huge talent, hence why the club was so keen to get him signed up and we're all delighted with that," said Lampard.
"But there is a lot of work to do.
"Raheem Sterling is an incredible example of a player with great talent whose work ethic added to that talent, and an improvement in a short period of time through absolute dedication to a complete player that we are all wowed by.
"(That) is exactly the great model for Callum because he has those talents. And I want him to be the best, the absolute best, because he has the potential to do that.
"And some of that is some hard truths and I saw some hard truths out of the game the other day in ways that he can improve.
"He needs to listen to them, and he will, and then he can be that player for us, which is great news for everybody."