The youngster broke into the first-team picture at Villa Park in the latter half of the most recent season.
The 20-year-old Australian has been at Villa since the age of 16 and made his breakthrough in the senior set-up at Villa Park this term after a debut appearance as a substitute in the FA Cup third-round tie with Wycombe Wanderers.
Lyden played the full 90 minutes of the replay of that match, and was then handed his Premier League debut from the bench, going on to make four top-flight appearances including two starts in the final weeks of the campaign.
Though the midfielder is understandably pleased with his first involvement for the side in 2016, he admitted to the club's website that he has his eyes set on playing a much bigger role in the Championship.
Lyden said: "I am excited for next season. I want to play a big part for the team. I'd love to maintain a regular spot in the side and be really influential. I will look to show the new manager what I am capable of. I can't wait to do that.
"I know we'll be looking for promotion to get Villa back to where we should be - and I want to play a part in that journey we're looking to go on. I am now desperate to help this magnificent club bounce straight back. I want to help give our fans a huge high."
Lyden was one of a number of talented youth prospects to play some part in the second half of Villa's atrocious campaign, with other academy stars such as Andre Green and Kevin Toner also becoming part of the first-team set-up.
With Villa likely to look to cut costs this summer as a consequence of relegation despite their recent takeover, the club's young stars could become more important to their squad than ever before next term.