The Premier League club were hosting a European match for the first time in their 101-year history but Riad Balic's goal early in the second half spoiled the party at London's Selhurst Park.
Palace are eighth in the Premier League and enjoying a good run of form while Larnaca are fifth in the Cypriot league.
"We will learn from it, the players will learn. And yes, it's disappointing, it's a frustrating night, but maybe the whole environment needed it to stay humble," Glasner told reporters.
"You are always told when you play in the Premier League you win the Conference League. Stay humble. I don't know if any debutant (is able) to win the competition. I don't think so."