The 20-year-old actress revealed that she was impressed by Phillips's caring nature when she took part in the programme's fourth series in 2006.
Speaking to The Sun, Lytton commented: "I was on the show a few years back now, but Arlene really looked after me. Her criticism was constructive, she taught me an awful lot and she cared about me on that show."
She added: "It will be a great loss. It is a shame because she knows her stuff and that is what Strictly Come Dancing is about."
Lytton, who recently denied rumours linking her to Jack Tweed, is best known for playing Ruby Allen on EastEnders from 2005 to 2006.
BBC One controller Jay Hunt announced last week that Phillips, 66, had been dropped in favour of former show champion Alesha Dixon, 30.
The decision has since been criticised by head judge Len Goodman, as well as ex-contestants Fiona Phillips and Rachel Stevens.