The meal, which is supplied by a voluntary organisation, was cancelled immediately.
Last month, a dead earthworm was allegedly found in the food in the same school.
"The school staff told us that they found a dead lizard. We are shocked because this is the second such incident reported within a week. There may be some foul play and a thorough investigation would be conducted," block development officer Subhransu Mishra said.
Odisha provides mid-day meals to over five million school children between the age of six to twelve years and supplementary nutrition to about two million pre-school children of ages up to six years.
While mid-day meals are provided in schools, cooked food is being provided to pre-school children in anganwadi centres (state-run daycare centres).