The 34-year-old is recovering from an operation to repair slight cartilage damage and is expected to be out of action for around eight weeks.
Walters has struggled to force his way into the Clarets side since his move from Stoke City last summer but figured against both Manchester United and Manchester City in recent weeks.
"There was a very small split in the cartilage. It was annoying him, so the decision was made, from himself as well, because he's old and wise enough, to get that tidied up.
"At his age he knows when it's right or wrong, so he and the surgeon decided it was best to do it."
Walters has made just one start and four appearances from the bench for Burnley this term.