The mother, Casey Anthony, 22, is being held on $500,000 bond after investigators said she lied to them and did not report daughter Caylee Marie Anthony missing for more than a month.
Prosecutors said in court earlier this week that Casey Anthony is also a person of interest in what is beginning to look like a homicide investigation, though she has not been charged. Sheriff's deputies testified that her car smelled of decomposition and a cadaver-trained German shepherd noted a smell of human remains there.
"I think what's important is grandma's very clear initial suspicion that the daughter was involved," said CBS News legal analyst Lisa Bloom. "The daughter has no good explanation for where she is and there's that unmistakable odor of death in the car. The police, when they testified at the bond hearing a couple days ago, also said they smelled it as well."
Cindy Anthony, Casey's mother and Caylee's grandmother, called 911 twice on July 15. In the first call, she asked police to arrest Casey Anthony for stealing a car and money.
She told a dispatcher that she had just found Casey, who had been missing for a month, as well as the car she was driving, which had been towed. She also expressed concern that her granddaughter was not with Casey.
She called 911 again about an hour later, crying, after she said Casey Anthony finally told her Caylee had been missing for a month.
"There's something wrong," Cindy Anthony told the dispatcher. "I found my daughter's car today, and it smells like there's been a dead body in the damn car."
When Cindy Anthony made her daughter talk to the dispatcher, Casey Anthony said the toddler had been taken by a baby sitter who police now believe may not exist.
Casey Anthony said Caylee had been missing for 31 days, and the dispatcher asked why she hadn't called sooner.
"I've been looking for her and have gone through other resources to try to find her, which was stupid," Casey Anthony responded.
Cindy Anthony told CBS News' The Early Show that Casey knows who has Caylee but doesn't know where she is.
"She's been cooperating with the police and telling them from the get-go that the babysitter has her," Anthony said. "We just need to find that person who was responsible for Caylee the last time Casey placed Caylee in those hands."
"I've maintained all along my faith in my daughter," Anthony told Chen. "We are looking for a missing child, and I'm going to continue to look for her, if I have to look on my own."
Thus far, Casey Anthony has been charged only with child neglect, making false official statements and obstructing a criminal investigation.
But Circuit Court Judge Stan Strickland ordered her held on an unusually high bond Tuesday after hearing the evidence of possible human decomposition found in her yard and car.
Strickland said she offered investigators no useful information and questioned the truthfulness of the information she did provide.
Phone messages and an e-mail seeking comment were left Thursday with Casey Anthony's attorney, Jose Baez.
He asked to have her bond lowered to $10,000, saying she had a right to freedom while facing lesser charges. He said there was circumstantial evidence of a possible homicide but it hadn't left authorities confident enough to charge her with anything more serious.
"She has no charges whatsoever relating to harming, intentionally harming Caylee," Baez told The Early Show. "So, you know, when people are saying this is a homicide investigation, I couldn't disagree more. This is a missing child and we need to find her."