Hodgson included just three centre-backs in his preliminary 26-man squad for the European Championships which is to be cut to 23 players by May 31.
Everton's John Stones, Manchester United's Chris Smalling and Chelsea's Gary Cahill are the trio of central defenders in question and former Liverpool star Carragher feels the Three Lions may be left short in France.
"I think normally - there are going to be three players dropped - you would expect those players to be from each area of the team," he told Sky Sports News HQ.
"But a defender can't drop out as there are only seven in there.
"I think the thinking is Dier has played as a centre back, but he has not played there all season. And I think that is a bit of a risk, I must say, to just go with the three centre backs.
"And one of them is John Stones, do not forget, who has had a tough time of it this season," Carragher added.
"So to have John Stones and Dier, who has not played there all season, as back-up centre backs is, I think, a bit of a risk."