Palumbo was optioned to Triple-A Nashville on Sunday, Levi Weaver of The Athletic reports.
Palumbo was able to work back into a normal routine after battling a heel injury this spring, but he struggled with a 12.79 ERA and 2.37 WHIP over three appearances (two starts). The 25-year-old should be good to go once baseball resumes, but he'll need to spend some more time developing in the minors prior to a potential return to the Rangers.