Lyons is named jointly in honour of Joseph Lyons, Prime Minister of Australia (1932–1939); Premier of Tasmania (1923–1928), and Joseph's wife, Dame Enid Lyons, the first woman elected to the Australian House of Representatives in 1943.

The electorate shares its name and boundaries with the federal division of Lyons.

In 1984, it was renamed to jointly honour Joseph Lyons, and his wife, Dame Enid Lyons, the first woman elected to the Australian House of Representatives in 1943 and subsequently the first female member of Cabinet (1949–1951).

Joseph Lyons represented the area for over 30 years at the state (1909-1929) and federal (1929-1939) levels.

Lyons is the largest electorate in Tasmania measuring 33,212 km2, it includes the far northern suburbs of Hobart and the towns of St. Helens, Swansea, Bicheno, Campbell Town, Longford, Evandale and Bothwell.