Lyle, whose health is still not 100 percent, ended the opening round one over par and seven shots adrift of leader Nick Cullen at Royal Melbourne Golf Club on Thursday.
The 32-year-old Australian's battles with cancer have been ongoing throughout his life after previously beating the illness as a teenager before it returned in March last year.
Refusing to surrender, however, an emotional Lyle showed tremendous strength and courage as he returned to play in front of his hometown fans.
"It was nice to get out there and see everybody that I love standing around the tee and even people I have never met before," Lyle said following the end of play on day one.
"You know, the crowd on the first tee was something I was not expecting and then to hear Lusi call out 'Daddy'.
"I sort of turned around and I thought I have got to find her and give her one last cuddle, and that was it, that was the end of me.
"Once that happened I was an absolute mess. But I hit that first tee shot with tears all through my eyes and normally I probably would have backed off but I thought, no, I just want to get it over and done with as quick as possible and hit a good shot.
"So I was pretty happy when I saw it going in the air down the fairway."