Lyon had a successful State of Origin career for Victoria, first being selected in 1988 against Western Australia. In 1989 he played in a famous game against South Australia, where Tony Lockett, Jason Dunstall and Dermott Brereton all played in the same forward line, performing well being named in the best players. In 1991 Lyon scored one goal against South Australia. He was selected again in 1992 against the same opposition. In 1993 he performed on the big stage in the State of Origin Carnival grand final against South Australia, kicking three goals and being named in the best players. In 1994 he was named Captain of Victoria, in what he has described as "a great honour". In 1995 he was named vice-captain against South Australia, scoring one goal. Lyon is a big supporter of Victoria and State of Origin and has said in reference to playing State of Origin that he "loved it". He is also a big supporter of State of Origin being reintroduced, and has described training and playing with the best players in the game as a "dream come true" and "it took the experience of playing football to another level". He has said that the great players of today should be afforded the same honour.