The Eagles went close to taking at least a point after a brave second-half in France, but it was Lyon who ultimately triumphed, with Palace losing in Europe for the first time this season.
Timer admitted his frustration with the result in an honest assessment of the performance.
"I think we showed character," he said. "I think the first half was not good from our side in every aspect.
"At half-time we told each other, this is not the way we want to show ourselves in Europe.
"We did better in the second-half, unfortunately it was not enough. But this is the minimum now. I think we have to show this every game and be consistent.
"We have the quality. It's not like they are the better team. We know we are a good team.
"We could have done way better in that first-half. Now the feeling is a bit sad, but hopefully we can show [high performance] the whole game against Brighton."