Lyne was born in Leicester, and started his career with Leicester United before moving to Nottingham Forest with Tony Loughlan in 1989. Although Lyne would go on to make just one appearance for Forest, the transfer would later be highlighted in the 1997 Premier League report of Rick Parry, Robert Reid QC and Steve Coppell on bung culture in football. Brian Clough and Ron Fenton would later be charged with misconduct by the FA over the affair, though the charges against Clough were later dropped. To gain playing time, Lyne was loaned to Walsall and Shrewsbury Town. The spell at Shrewsbury was a success, with Lyne scoring six goals in sixteen appearances, prompting the club to sign him on 11 July 1991 on a free transfer. Lyne would go on to make a further sixty-four appearances for the club, scoring eleven goals. On January 1993, Cambridge United manager Ian Atkins swooped for Lyne in an effort to bolster a squad battling against relegation from Division 1, making his debut in a 2–0 win over Grimsby Town. Unfortunately Cambridge were relegated at the end of the season, and the following season under new manager Gary Johnson he was twice loaned to Chesterfield, with his last appearance for Cambridge being a substitute appearance during a 1–0 home loss to Rotherham Unitedin September 1994. Lyne moved to Hereford in July 1994 on a free transfer, scoring five goals in eighty appearances. He was a favourite under manager Greg Downs, before leaving for Northampton Town. in 1996. Lyne's only appearance for Northampton came in a 1–0 home defeat to Leyton Orient, being substituted in the 79th minute.
In the summer of 2012 Lyne was appointed Head of Football Development at Hinckley United. Along with assistant Rob Roskelly, he will be responsible for the running of two new sides at the Greene King Stadium, the under-14s and 21s, running alongside the under-15s, 16s and 18s. Roskelly will take the three younger sides while Lyne will be in charge of the two older teams. Following the resignation of Hinckley United manager Dean Thomas on 10 October 2012, Lyne was put installed as a caretaker manager alongside former assistant manager Carl Heggs. Following Hegg's permanent appointment Neil reverted to his full-time job of Head of Football Development.