Farrell has decided to miss this season's Six Nations to prioritise his and his family's mental health.
And Malins has backed the 32-year-old, who will continue playing for Saracens, to return "as good as he was" at the sport's highest level.
"It has probably come as a surprise to many, but good on him," said Bristol back and Farrell's old Saracens' colleague Malins.
"I think he is unfairly treated in the media and from fans.
"We are all human beings. For someone to take such a battering over a period of time it is going to take its toll at some point, so good on him."
Farrell led England to a third-place World Cup finish in France last month, but the tournament build-up proved far from plain-sailing for him.
He was sent off in a World Cup warm-up game against Wales, only for an independent disciplinary panel to cause an outcry when it cleared him following a shoulder-led tackle to the head of Wales forward Taine Basham, which was expected to result in a significant ban.
World Rugby then appealed that decision, and he received a four-match suspension that included England's opening two World Cup fixtures against Argentina and Japan.
Farrell's father - Ireland head coach Andy Farrell - labelled media coverage of the episode "a circus", while his son was subjected to considerable attacks on social media.
At times during the World Cup, he was also booed by sections of the crowd during England games.
Malins, who was also part of England's World Cup squad, added: "I think it's shocking, to be honest.
"I was up in the stands when the teams were getting read out, and I heard that (booing). It was a big surprise to me. I really don't get it.
"For what he has done for England Rugby - he is one of the greatest players to wear that shirt - and for some fans to treat him like that is ridiculous.
"You won't find many people with a mentally tougher approach than Owen, so for him to feel like this is the step he needs to take is worrying in a sense, but also very brave and good of him to do so."
Saracens director of rugby Mark McCall has also criticised the "shameful" treatment of Farrell in what he believes should be a wake-up call for the game.
"I've worked with Owen for 15 years, every day, and the person that has been portrayed in the media bears no resemblance to the person I know. He's a family man, they've always come first," said McCall.
"There was a narrative created and started and that's been there for quite some time. There's only so much that someone can take.
"On top of that, he's a brilliant, caring, supportive team-mate and a loyal friend to many. And a very good, decent human being. That's the person I know.
"It was courageous and brave of him to open up. I admire Owen for many reasons anyway, but even more for doing this."
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