England were drawn alongside France, Sweden and co-hosts Ukraine following Friday's draw in Kiev.
And Lloris admits Fabio Capello's side are the favourites to top Group D.
"England are one of the biggest nations in football. They'll start as favourites in the group," said the Lyon player.
"Behind England, Ukraine, Sweden and France will fight for second place.
"If that's the case, so much the better, but everything will be decided on the pitch. We'll have the time to prepare properly before the tournament."
Meanwhile, Former England captain Paul Ince was pleased with the draw.
Ince told BBC Radio Five Live: "Overall we have to be delighted. It is a fantastic group for us.
"When you look at the groups we have had, in qualification and in the World Cup, the gods have been smiling down on us and they have certainly done it again tonight.
"If we can't get ourselves through that group we have only got ourselves to blame.
"On paper we should win all those games but the French are always tough, Ukraine at home will have loads of fans behind them - the atmosphere will be crazy.
"On paper it looks easy but I am sure Capello will not take anything for granted."