Even shorter, nice. How about this one liner, the last bit is looking a bit messy any ideas?

    print " is in the lyrics \n".join([set(lyrics_list) & set(words)]), "is in the lyrics"

How about

  >>> lyrics_list = ["her", "name", "is", "rio"]
  >>> words = ["is", "rio"]
  >>> print '\n'.join("{} is in the lyrics".format(word) for word in set(lyrics_list) & set(words))
  rio is in the lyrics
  is is in the lyrics

Heh, I just replied with pretty much this exact code to someone else trying to make it a one-liner.

Yes, it's possible. I would never, ever publish code like this, though. It's opaque.

Just because it can be written as a one-liner doesn't mean it should be written as a one-liner :)

Don't ever do this.

    print('\n'.join(['{} is in the lyrics'.format(word)) for word in (set(lyrics_list) & set(words))])

I never said it should, it was a challenge.