The western and central part of the locality is relatively flat but the eastern part of the locality consists of foothills of the Great Dividing Range.[3]
The New England Highway enters the locality from the north-west (Ballandean) and exits to the south (Wyberba). The Southern railway line runs parallel immediately to the east of the highway; there is no longer a railway station within Lyra.[5]
Lyra State School opened on 7 November 1929 with an enrolment of 10 students under head teacher Kathleen May O'Donohue. The school site was donated by Evan Hindmarsh. The school building was relocated from the former Applevale State School while the school furniture came from the former Somme State School. The school closed on 19 June 1966, with the students being transferred to Ballandean State School.[9][10]