The 42-year-old activist - who was born a female named Chastity and began gender reassignment surgery around three years ago - explained he is just a "regular guy" and could be a good role model for children and teenagers struggling with their identity.
He said: "I'm just a regular guy. All these ideas that children shouldn't watch me because I'm going to be confusing, all of this stuff, it's crazy and for all of the kids and teens out there with gender dysphoria, I think it's going to have a really positive impact.
"I know that if when I was growing up I would have seen someone like me on a show like this it would have made all the difference in the world in my life."
Responding to criticism that young viewers could find his transgender status "confusing", Chaz - who is partnered alongside professional dancer Lacey Schwimmer on the show - joked people won't "catch" gender dysphoria just by watching him on 'Dancing with the Stars'.
He added in an interview with US TV show 'Good Morning America': "It's a much bigger deal to everyone else than it is to me.
"People who don't have gender dysphoria aren't going to catch it by watching me dance on television."