Ramsdale had been Arsenal's first choice goalkeeper for the last two seasons but the arrival of Raya from Brentford this summer has given Arteta more options.
Ramsdale has not started any of Arsenal's last three Premier League matches, with Raya the preferred option.
Raya also played in Arsenal's opening Champions League game against PSV last week.
Schmeichel is not happy that Arteta is tinkering with a position that thrives on stability.
"It really is up in the air at the moment but I only get that situation if Arteta thinks [David] Raya is a better goalkeeper," Schmeichel said while appearing on the official Premier League show.
"That's the only way I can find any kind of sense in this. I think having the competition between two goalkeepers will just create situations in the games where they will have to go and prove themselves and that's the one thing you don't want from your goalkeeper.
"I don't see the benefit from a managers point of view. I don't see that it will make any of them better. It is a reactive position, all you can do is wait for something to happen and then you react, you can't go and chase anything. You need someone who has the full confidence of whatever I do in the game, I will be there next time."
