The Premier League champions trail 3-2 heading into the second leg of the play-off tie this week and the coach confessed that his team's hopes of progressing to the last 16 are extremely slim.
Guardiola said: "The margin to win in Bernabeu in that position [3-2 down], everybody knows that if you ask before the game, the percentage to go through, I don't know, we arrive at one per cent, or I don't know what.
"It will be minimal, but as much as you have a chance, we will try, that's for sure, you know? The chance is minor because the result was not good - five minutes ago, with 2-1, it would be different.
"But with 2-3, the chance is less, but as much as you have a chance, we are going to take it, and we'll see what happens."
City will go into the game in Madrid on the back of an impressive 4-0 Premier League win over Newcastle at the weekend and Guardiola hopes that the result can act as a springboard for the team heading into the closing months of what has been a disappointing campaign.
He said: "Listen, there are many, many games that we didn't play the level we play, and at the end, we lost it.
"And that was not just the three points, it's how it is affecting our minds for the next game. It happened a lot of times. This season, the reality is that we have been miles, miles away."
City suffered a scare when striker Erling Haaland went off injured against Newcastle but Guardiola hopes that he will be fit to take on Real.
He said: "When he went down, everyone was scared. But he walked off smiling and the doctor didn't tell me bad news so hopefully he is fine.
"I have not spoken to the doctor. Maybe it's not as bad as it could be."