I've been taking it with my breakfast and dinner along with vit C and some other antioxidants, but does this mean I am deactivating one of the iodine forms?
Yes. Lugols, Iodoral=The 5% solution consists of 5% (wt/v) iodine (I2) and 10% (wt/v) potassium iodide (KI). The use of Lugol's, Iodoral of vitamin C converts to one form of KI (potassium iodide).
Abraham, G.E., Brownstein, D.,Evidence that the administration of Vitamin C improves a defective cellular transport mechanism for iodine: A case report. The Original Internist, 12(3):125-130, 2005