The other couple in the bottom two were Roshon Fegan and Chelsie Hightower. They had earned the second-highest scores on Monday's show.
Elimination in the competition results from a combination of judges' scores and audience votes. The couple with lowest combined total goes home.
As the hour-long results show progressed, Gladys Knight - who had the lowest score coming out of Monday's performance show, and Gavin DeGraw, who has been in jeopardy of going home several times this season - were both declared safe from elimination.
A tearful Shepherd, who co-hosts "The View" on ABC, said she had "the most amazing time" on the show.
"I just want to say thank you for letting me live a dream I've always had," she said, adding that she'd had "the most amazing partner in Val Chmerkovskiy."
Before the results were announced, Shepherd had said she wanted to come back with a "new dance, new attitude."
"I hope we make it to next week," Shepherd had said.
Shepherd had earned 21 points - the second-lowest score of the night - for her tango on Monday. Judges told her it wasn't sharp enough and lacked her usual spark.
Tonight's show featured a live performance by the rock band Kiss and from the cast of "Dancing With the Stars: Live in Las Vegas."
Returning next week to perform are DeGraw, Fegan, "Extra" co-host Maria Menounos, NFL player Donald Driver, opera singer Katherine Jenkins, Knight, telenovela star William Levy and "Family Matters" star Jaleel White.
Actress Melissa Gilbert, who suffered a concussion during Monday night's performance, will also return to compete next week.
Tennis star Martina Navratilova and actor Jack Wagner have already been booted from the show.