"My confidence has gone up a level rather than down, (after) bowling the best batsman in the world (Tendulkar) through the gate. As an off-spinner growing up, that's what you dream of," Lyon told the Australian media on Sunday, ahead of the third Test in Mohali.
Australia are currently trailing 0-2 in the four-match rubber. The third Test begins on March 14.
Lyon, who took 4/244 in the first Test at Chennai's MA Chidambaram Stadium, was dropped for the second Test in Hyderabad. Australia handed debut to offspinning all-rounder Glenn Maxwell in Lyon's place.
Despite that setback, Lyon is feeling confident after bowling Tendulkar through his defence. It was a classical offspinner's dismissal as Tendulkar went for a drive and an inside-edge went onto disturb the stumps in India's first innings. Tendulkar made 81. India won the first Test by eight wickets.
"To be honest, I thought they came out all right in Chennai. To bowl Sachin Tendulkar through the gate you must be doing something right. I was quite happy with that," he said responding to calls from coach Mickey Arthur for changing his technique.
"I went for a few runs here and there, but bowling against the best bats in the world in their conditions, they were obviously going to come hard at me playing one spinner in the side," he added.
Lyon said it was tough bowling against the best players of spin and he learnt a lot by playing against India.
"Yes, I bowled only one maiden but they are the best players of spin. I feel I've grown within myself and learnt a lot about my bowling," he said.
"I've worked hard in the nets and I'm feeling confident in my own bowling. The technical stuff, it's all the same. I haven't changed anything from when I first started bowling for Australia since I was 16," he added.
He said he spoke to former legpinners Shane Warne and Stuart MacGill.
"I had a great phone call with Stuart Macgill before this (second) Test match and I really got a lot out of that just from talking to a past Australian spinner, and had that chat with Shane Warne after Chennai, which was fantastic."