Jose Mourinho's men enjoyed a comfortable night of Champions League action, with Sami Khedira scoring his first competitive goal for the capital club in an easy win
Jose Mourinho started Karim Benzema ahead of Gonzalo Higuain and the Frenchman repaid the faith shown in him with a fine finish after 18 minutes.
Benzema turned provider early in the second-half for Sami Khedira to double Madrid's lead and soon after the hosts were up by three following Mesut Ozil's strike that deflected off Lloris and into the net. Sergio Ramos completed the rout eight minutes from time to send Madrid five points clear of Ajax.
Real Madrid began the brighter of the two teams and enjoyed the lion's share of possession deep in Lyon's territory but could not create any clear-cut opportunities.
However, Mourinho's men soon took the lead when Cristiano Ronaldo flicked on Ozil’s corner to the far post where Benzema was on hand to divert the ball into an empty net.
Lyon began to force their way into the match and Bafetimbi Gomis expertly powered the ball home only for his effort to be correctly judged offside.
Benzema thought he had bagged his second when he was on hand to slip a quickly-taken Xabi Alonso free-kick past Hugo Lloris only for the referee to demand the set piece be taken again, much to the chagrin of the Frenchman.
The capital giants extended their lead two minutes into the second half, when Benzema took advantage of Bakary Kone's slip before steadying himself and sliding the ball into the path of Khedira to score his first goal for Real Madrid.
Soon after, the advantage became three when Lyon failed to clear the danger, and Mesut Ozil took advantage of the confusion to fire towards goal, with Lloris diverting to the ball under his own body and into the net.
The lead became four, when on 81 minutes Sergio Ramos controlled Kaka’s corner before smashing home from 10 yards, to give the result a comprehensive feel.
Remi Garde will now hope his side can avenge Tuesday's heavy defeat when Real Madrid travel to France in two weeks’ time, while Jose Mourinho's men will look to secure qualification to the knockout stages as soon as possible.