Bywater, who is in the final year of his contract at County, has fallen out of favour at Pride Park and has joined Sheffield Wednesday on loan until December 17.
The 30-year-old's last appearance for the Rams was in the home defeat by Hull in February.
England Under-21 goalkeeper Frank Fielding is now Derby's number one, while summer signing Adam Legzdins has also usurped Bywater in the pecking order.
"He's not in the squad at all. Nothing against Stephen because he's worked really hard, but he doesn't figure in our plans," Taylor told BBC Radio Derby. "At his age he just needs to play games and get in the shop window."
Meanwhile, Derby's Championship game against Crystal Palace at Selhurst Park has been moved to Friday, December 2 for television purposes. The match will kick-off at 7.45pm.