Chalkin said Exotic's crimes against Baskin weren't the only reason for footage being cut.
When asked about unearthed footage from 2015 where Exotic ranted about how he couldn't use the N-word, Chalkin admitted she had also seen similar incidents herself.
She told the Hollywood Reporter: "Yes. Joe is a racist, I would say categorically. He said things when we were filming that were very unsettling."
Explaining why this footage was cut she said: "They didn't have a context in the story, but he has a lot to learn.
"I think most of it was ignorance and not having a lot of exposure, and I think he even evolved over the course of the time that we filmed."
The story of Joe Exotic, who is currently married to fifth husband Dillion Passage, has gone viral since its Netflix release.
Fellow co-director Eric Goode added that despite Exotic's "incredible character", people should not forget that he "did a lot of horrible things".
He said: "Joe committed some really serious crimes and Joe was not only cruel and inhumane to his animals, he was cruel to the people around him.
"I think it's very important for people to understand that Joe is an actor and he tells people what they want to hear."