Let \( x \) be the number of bags of sand that Lee estimated he would need.
According to the problem, Lee's estimate was 25% more than the actual amount he used, which was 8 bags. This means we can express the relationship as:
\[ x = 8 + 0.25 \cdot 8 \]
Calculating \( 0.25 \cdot 8 \):
\[ 0.25 \cdot 8 = 2 \]
Now, substituting back into the equation for \( x \):
\[ x = 8 + 2 = 10 \]
Therefore, Lee estimated that he would need
\[ \boxed{10} \]
bags of sand.