The Premier League club host Bayern in the opening leg of the last-16 tie on Tuesday, with the return fixture at the Allianz Arena on March 18.
Chelsea will aim to capitalize on having home advantage in the first meeting, but Lampard acknowledges this will be a "level up" for some of his younger, less experienced players in Europe's leading club competition.
"We've got players with Champions League experience in this group, as well as younger players in the early stages of their careers, particularly in the Champions League," Lampard, who won the tournament as a player with Chelsea during his illustrious career, told the media on Monday.
"They have to understand why I keep talking about the levels going up, and what the mindset levels are. A big part of my job tomorrow is to explain to the players that over two legs, we need to be at our maximum.
"We must make sure every box is ticked in both games. We can't get caught up in game moments. After the game, we will probably suffer.
"Bayern Munich are an incredible side with the ball. They've got some really talented players who keep the ball and use the ball well. If we have to suffer, we have to suffer. That's our job over the next two games."
This will be a new challenge for Reece James and Mason Mount in particular, the duo having spent the previous season on loan at Championship clubs Wigan Athletic and Derby County respectively.
However, Lampard will continue to put faith in his youth movement as the Blues look to progress to the quarter-finals for the first time since 2014.
"I've got no doubts to start them. I trust in those two," the Chelsea head coach said. "I trust all the young players who have been part of the squad this year. That's a huge part of what we do here.
"The reason I trust them is because of the way they play, the way they train. I will speak to them.
"They've played big games but as I've mentioned before, it changes slightly when you get to the knockout stage. I'll certainly speak to all of my players, particularly the younger players about what that means."
Chelsea go into the game following a 2-1 league win Tottenham, who lost 7-2 at home to Bayern in the group stages of the Champions League.
Olivier Giroud started – and scored – in the weekend triumph over their London rivals, leaving Lampard with a decision to make over whether the France striker retains his place in the starting XI.
"I know I can rely on him," he said of Giroud. "He's professional, he's quality and he was great. He's given me a lot to think about."
Pedro is available again, but Lampard confirmed he will be without Christian Pulisic, Callum Hudson-Odoi – who is "not far away" from a return – and N'Golo Kante.