The report has outraged disability advocates and prompted an investigation.
Premier Annastacia Palaszczuk told reporters she wasn't comfortable with hearing the allegation.
"I've asked for an investigation into that," she said.
"My understanding is that there's more to that story - so I might leave that for others to comment."
The premier's acting director-general, Rachel Hunter, is investigating the boy's case along with those of other children she has been looking into for months.
That probe will be ongoing as more cases arise but does not have terms of reference.
However, Queensland police say the boy was not naked.
They say he was identified as a risk and provided with a suicide protection garment - as is standard QPS custodial practice.
Inquiries indicate the juvenile was not naked and remained clothed throughout, they said on Tuesday.
He chose to wear the garment as a sarong for a period of time instead of in the traditional way.
Police have been asked if the boy had any other clothing on while he wearing the garment as a sarong.
The Queensland government has been criticised over the holding of children as young as 10 in maximum security watch houses built for adults.
Some have been held for weeks at a time because state youth detention facilities are full.
A new Department of Youth Justice to be led by former deputy police commissioner Bob Gee has been set up to address the issue.
The government last week introduced laws requiring authorities to bring arrested and detained young people before the Children's Court within 24 hours or on the next available day.