The species was first described scientifically by Australian mycologists Melissa Danks, Teresa Lebel, and Karl Verns in a 2010 issue of the journal Persoonia.

The specific epithet argyrionus is derived from the Ancient Greek word meaning "silvery violet", and refers to the sheen and colour of the fruit bodies.

[3] The fruit body of Thaxterogaster argyrionus is sequestrate, meaning that its spores are not forcibly discharged from the basidia, and it remains enclosed during all stages of development, including at maturity.

[2] The fruit bodies of Thaxterogaster argyrionus are found in the ground under leaf litter in low-lying hills and plains near Mount Duval.

Nearby vegetation associated with the fungus typically includes Acacia filicifolia, Eucalyptus nova-anglica, E. stellulata, E. viminalis, Hakea microcarpa, H. salicifolia and Leptospermum flavescens.