Born in Circular Head in north-western Tasmania, Lyons became a school teacher. He won his local state seat for Labor in 1909 and was premier from 1923 to 1928.

In 1929 he moved into federal politics, becoming a member of the Scullin ministry. In early 1931 he resigned because of differences within the government.

With a group of followers he joined the Nationalists to form the United Australia Party with himself as leader.

He became Prime Minister and Treasurer later in 1931 when Labor was defeated at the polls.

He remained leader after the formation of a coalition with the Country Party in 1934, and died in office in 1939.