"We've got the qualifiers first and, like the FA Cup, if you can get a good draw, we can go through," the former Ipswich striker told BBC Radio Stoke.
"If we could manage to get through to the group stages, I think that would be massive for the club."
Tony Pulis's side will enter at the third qualifying stage in July and will need to win two ties to reach the group stages.
Walters enjoyed a successful first season at Stoke following his move to the Britannia Stadium in August.
After a slow start, the 27-year-old found form in the second half of the campaign and, along with fellow striker Kenwyne Jones, ended as the Potters' top scorer with 12 goals.
He scored twice in the 5-0 FA Cup semi-final victory over Bolton at Wembley in April.
Walters has paid tribute to manager Pulis, who parted with ?2.75m to sign him in the opening week of the season.
"He put a lot of faith in me," said Republic of Ireland international Walters.
"It was a lot of money to pay for me and I wasn't getting any younger, so hopefully with the goals I've scored, I've repaid a bit of that faith that he's put in me.
"He's a great manager. The whole thing is about team spirit, we've got a great bunch of lads and everyone works so hard for each other."
Source: BBC Sport
Source: BBC Sport