The first goal came courtesy of Karim Benzema, who scored in the 19th minute after a Cristiano Ronaldo pass. While Lyon had hopes of squaring up a few minutes later, Bafetimbi Gomis was adjudged to be offside and his goal disallowed.
Scorer turned provider two minutes into the second half as Benzema squared up for Sami Khedra. Mesut Ozil made it three after 54 minutes as his shot deflected off keeper Hugo Lloris. A fourth followed ten minutes before time courtesy of Sergio Ramos.
Real Madrid now sit at the top of the group table with nine points,
The teams will next meet in France on Wednesday, November 2 for the follow-up fixture.