The national team boss gave the armband back to Manchester United defender Rio Ferdinand for the Euro 2012 qualifier against Montenegro after he returned from a long injury lay-off which saw him miss the World Cup and subsequent games.
It was a decision Hodgson did not agree with.
Bad call: Hodgson believes Capello was wrong to favour Ferdinand over Gerrard with the England captaincy
'I was disappointed to see that he had the England captaincy taken away from him - I've got to be honest and say I don't really understand that decision,' Hodgson told the club's official website.
'As much as Rio (Ferdinand) is a great player as well, I think if you have been out for a long time through injury and you're making your first England appearance for a long, long time, someone who actually had the captaincy for three games and had done brilliantly deserves to keep it.'
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'I haven't spoken to Steven about the subject but I just hope he is not too disappointed about it.
'At the moment, in his form and with his ability and desire to take responsibility, he plays a true captain's innings for us and I think he did it for England in the three games before [Tuesday night].'
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