Lie's interest in the landscape, particularly the forest and the sea, probably began when he was a young boy living in Norway. Like most of his fellow countrymen, Lie developed an enduring attachment to the natural world that continued unabated throughout his career. His observations of the landscape, particularly the spectral qualities of winter light, inform his work with a sense of realism that is brilliantly combined with the loose brushwork and novel compositions of Impressionism.

Lie enjoyed success during his lifetime. He exhibited at MacBeth Galleries in 1921 and participated in annual exhibitions there until 1934. He was also affiliated with Madison, Folsom, and Knoedler Galleries. Lie was awarded numerous prizes at the various art shows he participated in. He sat on the board of the Art Students League and served as president of the National Academy of Design from 1934 to 1939.