Lyon is on track to return for Australia's two Tests against Bangladesh in August, after tearing his hamstring last December in the third Ashes match in Adelaide.
That series will kick off Australia's busiest 12 months in history, with up to 21 Tests in the space of a year including tours of South Africa, India and England.
Included in that stretch is a 12-week burst between December and March when Australia will play nine Tests, before the five-Test Ashes series in England next year.
Lyon's longevity has long been one of the 38-year-old's greatest assets, having played 100 straight Tests between 2013 and 2023 before calf and hamstring tears in the past three years.
Teammates have backed him to return given his work ethic, while Lyon's successful rebound after a torn calf in the 2023 Ashes has yielded 71 wickets at an average of 24.22.
Bailey stressed on Wednesday there would be no plan to manage Lyon's workload or rest him from matches, but said officials had to be realistic about his return.
"It's a pretty significant hamstring tendon injury to a 38-year-old, so there's a sense of realism it may not ever get back to the upper echelon of where you need it to," Bailey said.
"So what does that look like?
"It may mean there's not necessarily the capacity to play big blocks of games, and you may have to look at that.
"It's just being a little bit aware that's a possibility."
Bailey on Wednesday ruled out taking an eye to the future by playing fellow spinner Todd Murphy for the sake of it, adamant selection would still be merit-based for all Tests.
After leaving Murphy out following Lyon's injury last summer and going without a slow man in three of five Tests, spin is clearly back on Australia's agenda for the next year.
Next summer's five-Test tour of India has prompted Murphy to be added to the national contract list that was released on Wednesday, while Lyon and Matt Kuhnemann remain on it.
"We're just trying to maintain that connection particularly with Todd. He was really close to playing in Sydney. We like the skill set that he brings," Bailey said.
"India, we know we're going to need the spin depth. England, we know we're going to need some spin depth.
"Not entirely sure that'll be applicable for South Africa (in October). And then the Top End (against Bangladesh) is probably a little bit of an unknown."
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