Taylor had the chance to put Burnley in front from the spot, but missed and seconds later Leicester went down the other end and scored what turned out to be the only goal of the game.
Defeat sent the Clarets to the bottom of the Premier League table ahead of their trip to West Ham on Saturday, where victory is almost a must.
But he has already said he wants to keep the responsibility of taking spot-kicks and Dyche is happy for that to happen.
“If he’s ready to take a penalty, then he’ll take a penalty,” Dyche said before referring to Taylor’s days at Portsmouth where he scored a couple of crucial penalties.
“The way he gripped the ball and walked after it I had no other thought than??he would score. His history of taking penalties is clear and he’s done well with big??occasions and big moments.
“I didn’t say anything to him afterwards. What am I going to say that’s going??to make him feel any different than he feels?
“He’s old enough and wise enough to know that the goods, bads, ins and outs of??football. And he’s also an honest campaigner which we like here.”