The tie will take place over one leg because of the competition's revised schedule due to the impact of the coronavirus pandemic.
Celtic Park will likely host the game on August 18 or 19, but there is still a possibility the fixture could be staged at a neutral venue, if KR Reykjavik have any Covid-19 issues getting to Glasgow.
"Hopefully it will be at home," Lennon said after Sunday's 1-1 Premiership draw with Kilmarnock at Rugby Park.
"We are not sure if the game is going to be at a neutral venue or not.
"Hopefully it is at Celtic Park and we will be delighted if it's at home.
"That's all we can ask for and we will take it from there."
The qualifying rounds for the 2020-21 Champions League are taking place before the 2019-20 campaign has finished.
The Scottish champions, looking to make it 10 successive Premiership titles in a row this season, face up to four qualifying rounds in total with the draw for the second qualifier taking place on Monday.
The Hoops' only previous meeting with KR Reykjavik came in a Champions League qualifying tie in the 2014-15 season when they progressed 5-0 on aggregate.