Their campaign kicks off on September 19 with a daunting clash at the Etihad Stadium against the reigning Premier League champions.
But Terrier affirms that his side are looking forward to the challenge and fancy their chances in the Champions League.
"We'll get into the swing of the Champions League right away against one of the best clubs in the world!" he signalled to Goal.
"City are the favourites, the other two clubs are less impressive. I think the group is balanced and we can move to the second stage.
"We had just finished training at the time of the draw and we watched it all together. We were happy to take City, playing against them is very cool and the team proved last year that they love playing big games.
"To play against some of the best players in the world there, against Guardiola who offers a huge game, we are all looking forward to it."
Terrier added that he was delighted to continue lining up alongside Nabil Fekir, who appeared set to move to Liverpool over the summer before the transfer broke down.
"He is a very great player and in training I try to learn from him. In addition to being a very good player, he is also a very good captain," he added.
"From the outside we often have different impressions of what is really happening inside. He talks a lot with the players. We have a group with a lot of young people and he gives his experience.
"It suits him well because he was in the same boat not long ago. If he sees us stressed he comes up, he speaks quietly and gives advice. It's really good".
Lyon are currently eighth in Ligue 1, winning two and losing two of their opening four games of the season.