The midfielder took over as captain in the summer but has struggled with his form, before lashing out against team-mates and first team coach Shaun Derry following the loss to West Ham on Monday.
O'Neil said that outburst played a part in the decision to make Nelson Semedo the new captain, but he has challenged Lemina to put in a big performance as Wolves face Ipswich next in a crunch relegation clash.
“I don’t know if it inhibited him, but it was a change for him," O'Neil said when asked about Lemina's captaincy.
“It was a change for him that brought him extra stuff (responsibilities).