The actress, 79, opened up about the 'Manhattan' filmmaker, 88, during an appearance on 'CBS Sunday Morning', with whom she was in a relationship from 1980 to 1992.
Mia - who appeared in 13 of Woody's films while they were together - was left stunned by his decision to start dating her adopted daughter Soon-Yi Previn, now 53, after their relationship ended, before he married her.
Woody was also accused of sexual abuse by another one of the actress' daughters Dylan Farrow, who alleged the director molested her when she was aged seven, though the filmmaker was never charged.
When CBS journalist Seth Doane asked Mia: "Are you able to separate the experience as an actor in those films from the personal trials and tribulations that would follow?", the star replied: "Oh yeah, yeah."
She added: "I completely understand if an actor decides to work with him.
"I'm not one who'd say, 'Oh, they shouldn't'."
After 39-year-old Dylan's sexual assault allegations against Woody emerged, a string of actors have declared they would not work with the Oscar-winner.
Kate Winslet and Drew Barrymore are among those who have expressed regret over starring in his movies, while Colin Firth and 'Barbie' director Greta Gerwig have said they would never work with him again.
Timothée Chalamet and Rebecca Hall donated their salaries earned from Woody's movies to the Time's Up movement.
Mia, whose exes include Frank Sinatra, has said inviting Woody into her family was the "greatest regret" of her life.
Woody has two daughters with Soon-Yi, who he married in 1997.