diff --git a/homeassistant/components/binary_sensor/strings.json b/homeassistant/components/binary_sensor/strings.json
index 62a73036238..62ff8187731 100644
--- a/homeassistant/components/binary_sensor/strings.json
+++ b/homeassistant/components/binary_sensor/strings.json
@@ -115,9 +115,9 @@
       "off": "Not charging",
       "on": "Charging"
     },
-    "co": {
-      "off": "Clear",
-      "on": "Detected"
+    "carbon_monoxide": {
+      "off": "[%key:component::binary_sensor::state::gas::off%]",
+      "on": "[%key:component::binary_sensor::state::gas::on%]"
     },
     "cold": {
       "off": "[%key:component::binary_sensor::state::battery::off%]",
diff --git a/homeassistant/components/binary_sensor/translations/en.json b/homeassistant/components/binary_sensor/translations/en.json
index fd69ab678a7..1dc6cf2caa1 100644
--- a/homeassistant/components/binary_sensor/translations/en.json
+++ b/homeassistant/components/binary_sensor/translations/en.json
@@ -59,8 +59,6 @@
             "connected": "{entity_name} connected",
             "gas": "{entity_name} started detecting gas",
             "hot": "{entity_name} became hot",
-            "is_not_tampered": "{entity_name} stopped detecting tampering",
-            "is_tampered": "{entity_name} started detecting tampering",
             "light": "{entity_name} started detecting light",
             "locked": "{entity_name} locked",
             "moist": "{entity_name} became moist",
@@ -134,7 +132,7 @@
             "off": "Not charging",
             "on": "Charging"
         },
-        "co": {
+        "carbon_monoxide": {
             "off": "Clear",
             "on": "Detected"
         },
diff --git a/script/translations/develop.py b/script/translations/develop.py
index f59b9b9c7cb..2f9966afc29 100644
--- a/script/translations/develop.py
+++ b/script/translations/develop.py
@@ -75,7 +75,13 @@ def substitute_reference(value, flattened_translations):
     new = value
     for key in matches:
         if key in flattened_translations:
-            new = new.replace(f"[%key:{key}%]", flattened_translations[key])
+            new = new.replace(
+                f"[%key:{key}%]",
+                # New value can also be a substitution reference
+                substitute_reference(
+                    flattened_translations[key], flattened_translations
+                ),
+            )
         else:
             print(f"Invalid substitution key '{key}' found in string '{value}'")
             sys.exit(1)