Joey told to behave
The Icelandic star has been in great form since his arrival in January from Real Betis.
The 22-year-old was dismissed during Villa's defeat to Birmingham City for an over-the-top two footed challenge on Matthew Upson.
Taylor has now warned Gudjonsson not to repeat his challenge if he wants to remain at Villa Park.
"There is no room on a football pitch for the type of tackle Joey made," said Taylor.
"He had only been cautioned a minute earlier, then we see a tackle like that."
Gudjonsson was sent off along with Dion Dublin and Taylor could not defend either player.
"There was no excuse for what either of them did, no matter how much they were provoked," he continued.
"Joey's circumstances are slightly different. He's 11 years younger and trying to earn a permanent deal.
"He likes to tackle but he has been told very clearly he's no use to anyone if he's off the pitch. It's something he has to get right if he's going to have a career here - he's had three cautions and a red card in his first five games.
"I'm all for aggression and commitment but there's no way I can defend those two incidents. If I tried to, I'd be going totally against my principles.
"That's why I was so upset two of my players were involved on Monday night."