The 26-year-old quit her role as Jo Sugden in June 2008 after three years with the Yorkshire-based soap.
Reflecting on her decision, Pallett told PA: "I'm enjoying having the freedom to make decisions about other work. Emmerdale was my very first role and I'm 27 at Christmas, [so] I feel I need to earn my stripes as an actress. I need to explore other roles."
The star added that she would be willing to reprise her part once "enough time had settled and they had a fantastic idea for [Jo's] return".
She continued: "It would be timing and storyline. I love Emmerdale and the character I played so never say never."
Pallett also confirmed that she would support the programme's producers if they decided to reunite Jo with her violent husband Andy (Kelvin Fletcher).
"You can't always choose. Sometimes it's better for your character to do what you don't want because then you have to tell that story," she commented. "Life's not that kind, is it? I would go wherever the character goes."