This weekend's main event in the top flight pits the league-leading Reds against the fourth-placed Blues, although the Premier League table may look slightly different depending on how other teams fare in Saturday's fixtures.
While Arne Slot's side defeated Crystal Palace 1-0 before the international break for their sixth win in a row, Enzo Maresca's side were held to a 1-1 home draw by Nottingham Forest, which denied them a sixth victory on the bounce in all competitions.
However, previewing the game for Sports Mole, Lynch gave credit to Chelsea for their marked improvement - as well as hailing Cole Palmer as the best player in the division - but he would not be surprised to see goals fly in left right and centre.
""Chelsea look much improved, don't they? They've made a decent start to the season, just had that little bit of a blow of a home draw to Nottingham Forest, although Liverpool would have absolutely taken that result over what they got against Nottingham Forest!" Lynch said.
"Yeah, they do look a little bit more of a serious outfit. I would say they've probably got the best player in the Premier League at the moment in Cole Palmer. I think he is so absolutely crucial to them. I think if you take him out, then maybe we see a little bit more of the chaos again and the things that are going wrong at Chelsea.
'Liverpool can batter defensively frail Chelsea'
"One thing I think from their opening to the season is defensively maybe a little bit frail. So they can score, but they do look quite open, which again, if you come to Anfield and be open, then there's every chance you get absolutely put to the sword.
"If Liverpool put a couple of goals on them early, it could be any sort of score. So that's something Liverpool should have in the back of their mind. And as I say, as much as they look improved, I think it's a chance for Liverpool to say that, well, you might be slightly better than what you were when you were finishing eighth, but the real challenge is can you be as close to us? And we hope to be title contenders.
"I really do think it's a chance for Liverpool to prove that there's a gap there still and a big one. And I do think on paper in terms of what the squads that the two sides have got, despite the money that Chelsea have spent, I still think Liverpool are far better, and this is a chance to really prove that and put down a marker.
"If that defensive frailty of Chelsea shows at any moment in the game, Liverpool are well positioned to batter them, particularly with that Anfield atmosphere for Chelsea games that we're used to."
Sunday's mouthwatering showdown pits the best defensive unit in the Premier League against one of the most prolific attacking forces, as Liverpool have shipped a league-low two goals in the current campaign while keeping a record five clean sheets.
On the other hand, only Manchester City (17) have netted more top-flight goals than Chelsea's 16 in the current campaign, and the Blues will be pitting their wits against a Liverpool side without first-choice goalkeeper Alisson Becker due to his hamstring injury.
However, Caoimhin Kelleher has proven himself as a capable deputy, while Virgil van Dijk has enjoyed an extended break after his early return from Netherlands duty, and Lynch still feels that Liverpool have the rearguard nous to limit Chelsea's opportunities.
Why Liverpool have "nothing to fear" against Chelsea
"It's a good test of that structure - the two midfielders in front of the back four. It's worked so well so far, and Liverpool have given up very, very few shots and very low-quality opportunities so far this season, so it's a really good test of that," Lynch added.
"But I think if Liverpool can stand firm there and show that defensive steel, then, like I say, nothing really to fear from Chelsea, because you do believe that chances will come at the other end and that Liverpool will be able to put the goals in.
"Ultimately, I think this ability to give up low-quality opportunities, this quality that Liverpool have shown in that sense, this is a good chance to show that they can do it against better-quality opposition, and Chelsea have definitely got that.
"I think Cole Palmer is quite scary, I'm sure, but when you've got defenders like Van Dijk and Konate in the form they're in, you've got Gravenberch sweeping up in front, Trent Alexander-Arnold, Andy Robertson, and then obviously it won't be Alisson, but Kelleher is still an excellent goalkeeper. You've got to have faith that that unit will be able to keep Chelsea out or at least restrict the quality of the chances that you get.
"And if you come through that test again, it will just firm up that belief that this is just defensively a very, very good team and this will sustain over a Premier League season."
Chelsea will head to Anfield without two suspended defenders in Wesley Fofana and Marc Cucurella, although in Friday's press conference, Slot admitted that Liverpool had "some issues" in the wake of the international break.
Will Alexis Mac Allister start against Chelsea?
Three of Liverpool's South American contingent - Luis Diaz, Darwin Nunez and Alexis Mac Allister - were all called up to their countries this month, the latter joining up with Argentina despite suffering a scare against Palace.
Mac Allister was an unused substitute in Argentina's World Cup qualifying draw with Venezuela on October 10, but he played 66 minutes of the 6-0 win over Bolivia on Tuesday, and Lynch has implored Slot to start all of his big-hitters on Sunday.
"There's no reason really why Liverpool wouldn't be full strength apart from Alisson. If Mac Allister does come through, that's a bit of a pain for Liverpool, but we play Chelsea on Sunday, and so that should be sufficient rest time to get him ready, particularly as it's late on Sunday as well, so he should have enough time to sort that," Lynch concluded.
"So Liverpool should be going into this as close to full strength as he can, and that - from what we've seen so far - is a very, very good team that they're going to be able to put out, and one you would hope would be good enough to get past Chelsea."
As well as Alisson, Liverpool's only other fitness concerns for Sunday's game are foot fracture victim Harvey Elliott - who is "pretty unlikely" to make the cut - and Federico Chiesa, whose availability remains clouded in uncertainty due to the knock he picked up at the beginning of the month.