This was posted on Quora by a private tutor, I hope it helps:
"The verb, to lay, means to place something down with your hands: “We laid the body down slowly and carefully at the cemetery.” However, the action of reclining requires the verb, to lie: “We are lying down after a long day to get some rest.”
It gets a bit tricky, though, because the verb, to lie, is homographic: the same word has the same pronunciation, but two different meanings. When, to lie, means to make a false statement, the past tense is lied: He lied about the event.” When the verb, to lie, means the action of reclining, the past tense is lay: “He lay down to rest before dinner.”
Getting all this straight is a matter of memorizing the definitions of the verbs, to lay and to lie. Their conjugations also need to be memorized".
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