The difference between "lie" and "lay" is that "lie" is an intransitive verb and "lay" is a transitive verb.

Name: The difference between "lie" and "lay" is that "lie" is an intransitive verb and "lay" is a transitive verb.
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Transitive verbs can take an object: I lay the blanket down. The blanket is the object in the previous sentence. The word lie is intransitive; it cannot take an object: I lie on the bed. In the previous sentence, there is no object.

The Difference Between "Lie" and "Lay" Is That "Lie" Is