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Lyr is a city-kingdom established in the northern highlands by mortals after the Giant Wars. It's many inhabitants (mainly humans and kobolds) are strong and hardy, with a greater affinity to Frost as a result of their location.
Lyr was all but destroyed during the Twilight Wars, but it was also in Lyr where the remnants of the Twilight were purged once and for all. Rogan Kayle was crowned King of Lyr, and was setting on the reconstruction of the cities before the Lost Souls attacked. The recovering Lyr was once again destroyed by the Lost Souls, but Skylords followed the Lost Souls through their rifts in time and undid the destruction wrought in the past by the Lost Souls.