Celtic manager Lennon triggered a suspended three-match ban after he was found guilty of an SFA charge following an incident involving St Mirren skipper Jim Goodwin in the teams' 1-1 draw in Paisley last month.
Butcher - who himself was cleared by the SFA of breaking a dugout window at Dundee's Dens Park on March 10 - and his side now travel to Celtic Park on Sunday, where the Clydesdale Bank Premier League champions-elect's manager will have to watch from the stands.
But Caley Thistle's plain-speaking boss claims swearing and other forms of industrial language are not the sole preserve of players and coaching staff.
He said: "I better watch my language in the dugout as well. I better not punch any holes or dislodge the Perspex of the dugout like I did at Dundee either. My case has been dismissed because of a complete lack of evidence but not so for Neil and I feel very sorry for him.
"I don't know anybody, apart from (Ross County's) Derek Adams, who doesn't swear on the sidelines. Even some of the match officials swear, because it's appropriate at the time."
SFA compliance officer Vincent Lunny launched his investigation into Lennon's actions after receiving complaints from two fans.
But Butcher believes the Big Brother culture in Scottish Football has gone too far. "It's now one of those situations where you don't know who is watching you, who is listening to you," he said. "Managers and coaches are coming under far more scrutiny than they ever did before."
Celtic will clinch the SPL title if second-placed Motherwell fail to beat Dundee United at Tannadice on Friday night. Lennon said: "If we are the champions tonight I still want the players to go out and play with a bit of freedom on Sunday.
"It has been long, tough road. Winning the (William Hill Scottish Cup) semi-final last week was huge for momentum. There is no pressure on us, they can go out and enjoy themselves."