This armadillo species is typically found in the grasslands and pampas of northern and central Argentina (Abba et al. 2007; Abba and Cassini 2008; Abba and Vizcaíno 2011; Abba et al. 2011, 2012). It is also present, but less common, in woodland and forest habitats.

Dasypus hybridus is found in Argentina, Uruguay, Paraguay, and southern Brazil. It occurs as far south as the province of Buenos Aires, Argentina (Abba and Vizcaíno 2011, Abba et al. 2012). The distribution is more restricted than depicted by Redford and Eisenberg (1992) and Wetzel (1985). Localities in the west near the Andes are based on incorrectly identified individuals. In the province of Córdoba, Argentina, it is restricted to the east. The exact northern limit of its range is uncertain due to its morphological similarity to Dasypus septemcinctus, while the western limit is unclear due to its similarity with D. yepesi. It occurs from sea level to 2,000 m asl.

Dasypus hybridus has been recorded in a few protected areas. It is considered a conservation priority species in Uruguay (González et al. 2013).