The chiral crystal structure and strong spin‐orbit coupling of tellurium (Te) make it an appealing platform for exploring unconventional radial spin textures, which can be probed via bilinear magnetoelectric resistance (BMR). Recent studies have consistently reported a pronounced BMR in Te nanosheets under in‐plane current and out‐of‐plane magnetic field, suggesting complex coexisting mechanisms. Here, to clarify this discrepancy, a systematic investigation on the second‐harmonic longitudinal resistance (R_||^2ω) is performed in the circular disc device made of single‐crystalline Te nanosheets. The R_||^2ω is found to be prominent under out‐of‐plane magnetic fields, in agreement with previous observations. Notably, the out‐of‐plane BMR reverses sign on opposite sides of the current path, which cannot be explained by spin texture considerations. Instead, the out‐of‐plane BMR is attributed to the Joule‐heating‐induced Nernst effect, as further supported by COMSOL thermal‐distribution simulations. These results reveal the crucial role of thermoelectric effects in modulating BMR in chiral crystals, offering new insight into the long‐standing discrepancy between experimental observations and theoretical predictions.