Made of wood and originally intended to be used as a circus, the theatre was managed by the parents of the music hall comedian Dan Leno in 1883, who regularly performed there in the early stages of his career.
By the late 1950s, the Lyceum was experiencing financial difficulties and by 1966 bingo callers were keeping the rumoured threat of demolition at bay.
The theatre closed in 1969 and, despite being granted Grade II listed status in 1972, planning permission was sought for its demolition in 1975.
For many years the pantomime attracted prominent actors and variety turns and visiting producers in the months between Christmas Eve and Easter.
In the 1940s, the Lyceum began to produce its own pantomime and was soon bringing in stars of radio such as Morecambe and Wise, Harry Secombe and Frankie Howerd.