The sides meet at Celtic Park on Tuesday following England's 3-1 win against Slovenia in their latest Euro 2016 qualifier on Saturday.
Scotland will be optimistic after a 1-0 win against Ireland on Friday.
"We know there are a lot of stern tests ahead of us and it starts on Tuesday night," said Hodgson.
A crowd of around 60,000 are expected to watch the latest edition of the world's oldest fixture. England won the last encounter 3-2 at Wembley in August 2013.
"The Scottish fans are exceptional, especially at Celtic Park," Hodgson added. "That is all to the good. That is what we need."
England have a 100% record in Group E after four successive wins and look set to progress to the Euro 2016 finals at a canter.
"We have done all we can do in these first four qualifying games so we are reasonably satisfied with that, but we know there is a long way to go," Hodgson said.
"A game like that in Scotland will probably tell me a little bit more about this team.
"I hope the players who get a chance to play will be able to stand up to any crowd pressure and I hope they will learn from it. Any lessons we take from it will only be valuable in the future."
West Brom striker Saido Berahino and Everton midfielder Ross Barkley are in line to start for England.
Everton defender Phil Jagielka is expected to travel despite coming off with what appeared to be an injury in the 89th minute against Slovenia.
Goalkeeper Joe Hart will not be involved after being allowed to return to Manchester City.
Southampton's Fraser Forster looks to set to start in goal on the ground where he played for Celtic for four seasons.
Manager Roy Hodgson believes a passionate friendly against Scotland is exactly what England need.