Kyrgios went on to win the tournament in Acapulco
Rafael Nadal insists he has immense respect for Nick Kyrgios's talent, despite his criticism of the Australian last week in Acapulco.
But the Spaniard also said that players need to show 'good values'.
Kyrgios survived three match points to beat Nadal in the quarter-finals but afterwards Nadal claimed that Kyrgios "lacked respect".
"I never said nothing too negative about Nick, even if he took it more personally," said the Spaniard.
"But there's other stuff in my opinion he can do better."
The 17-time Grand Slam winner added that his comments had nothing to do Kyrgios hitting an underarm serve during the match, which he said did not make him feel disrespected.
During the match, Kyrgios also complained of illness and taunted the crowd, the vast majority of whom were backing Nadal.
"I heard that he took it very personally. I really didn't see it but somebody told me he put some stuff on his social networks," said the world number two, who is competing at this week's Indian Wells Masters.
"I understand this part of the game and I think it's a good show for the game.
"Everybody is free to do whatever they want, but, in my opinion, he has an impact on the new generations. He's young, he's a famous player and in my opinion we need to show good values for the kids."
Kyrgios, who jumped 39 places in the rankings to 33 in the world after he won the tournament in Acapulco, his first ATP title in more than a year, said last week he wasn't interested in Nadal's opinion.