The Democrats' Obama campaign has hijacked Big Bird for an advertisement that uses the character to attack Republican rival Mitt Romney.
Romney said in a presidential debate last week that he would cut funding to PBS, the public broadcaster behind the hit kids' show.
PBS has asked Obama's team to pull the advert, which has created headlines worldwide. But Mr Lyall doesn't want to get dragged into a political slanging match. Even though he was once a professional dancer, he is shy, even reclusive, and prefers to stay out of the limelight.
"Kermit loved the spotlight but I always stayed out of it. I hope it'll blow over quite quickly," he said.
Mr Lyall returned to Christchurch after Mr Love, his partner of 50 years, died in 2008.
Even his neighbours didn't know of his celebrity past, which began when he fell in love with Mr Love while rehearsing for a West End show in London.
Their big break came in the late 1960s while helping Henson kickstart Sesame Street. They were tasked with designing a costume for a large bird who would be central to the educational show.
Mr Lyall's background as an apprentice dress cutter at Millers department store in Christchurch came in handy. "The designers were on the same floor as the cutters in those days, and I got interested in making clothing from a purely amateur point of view. It served me well."
Mr Lyall built the frame for the 2.5m Big Bird costume, while Mr Love designed the bright yellow exterior and outsized feet.
When the show went to air, it soon became a huge success.
"It was wonderful to be involved in, but you don't think of it at the time. You just got on with it. It was hands-on and I was doing something I was familiar with. It was life-consuming for a lot of people, not necessarily me, but it was interesting times."
Mr Love also helped design other costumes and puppets. He even appeared on the show as Willy, the neighbourhood's resident hot dog vendor.
But Mr Lyall stayed in the background, living in New York and working on bird costumes, each of which took three weeks to make. Big Bird became a US national treasure, and often visited the White House. Mr Lyall accompanied Mr Love on a visit in 1986 when Ronald Reagan was President.
But Sesame Street - being a non-profit organisation - was always careful to remain impartial. Mr Lyall is hoping the political scandal will soon die down and let him return to being the quiet, artistic neighbour with the secret celebrity past.