[1] The species epithet was chosen in honour of the German naturalist, doctor and explorer Robert Christian Avé-Lallemant, who mentioned these palms in his writings about his travels in 1858.

[1] It is locally known as butiá-anão or butiazeiro-anão in Rio Grande do Sul,[1] also butia-zinho in Brazil,[3] and palmera butiacito in Uruguay.

It is found somewhat widespread in an area of southeast Rio Grande do Sul, Brazil[1] and in a fragmented cluster of 8 small subpopulations totalling some 300 plants in a part of Rivera Department in northern Uruguay.

[4] The habitat of this species is typically sandy grasslands (campos arenosos),[1] with red soil,[3] where it can locally be the dominant large plant.

[1] Nonetheless, an Uruguayan study from 2011 found that it proved to be impossible to differentiate B. lallemantii and B. paraguayensis from each other genetically.

[1] A natural hybrid of this species with Syagrus romanzoffiana has been recorded in the wild in Uruguay (Brussa & Grela 2007).