Local police confirmed it was Braz, but the circumstances of her death are unknown.
The singer, who was 63, was discovered close to her home in Saquarema, Rio de Janeiro state.
International hit Lambada was released by French group Kaoma in 1989, with Braz providing the Portuguese vocals.
It sold millions of copies around the world.
In Portuguese, the song was known as Chorando se foi (Crying he/she went).
The tune and lyrics were based on a Bolivian song, but the title, Lambada, came from a dance style in northern Brazil.
The Bolivian brothers, who recorded the original version with their group Los Kjarkas in 1981, took legal action against Kaoma for the song's unauthorised translation and were reported to have received a pay-off.
The song, with its catchy beat and sensual lyrics, continues to inspire musicians today.
US pop singer Jennifer Lopez used the tune in her 2010 hit On The Floor.
British group The Spice Girls mentioned the Lambada by name in their 1998 single Spice Up Your Life.
UK electronic group Clean Bandit cited it, in a BBC interview, as one of their biggest inspirations.
"It's been quite inspirational for us," said band member Grace Chatto. "It's got that mix of euphoria but also melancholy and beauty that we try to recreate."
Loalwa Braz, the Brazilian singer best known for the 1980s hit Lambada, has been found dead in a burnt-out car in Brazil.