I should have said that you need to adjust this value to your needs. > \override InstrumentName.X-offset = -1
You can move the InstrumentName to the left (-) and to the right (+). Instrument names are right aligned with the left staff edge by default. You can change that using either X-offset, padding or extra-offset. << \new Staff \with { shortInstrumentName = "staff" } { a1 \break b } \new Lyrics \with { shortInstrumentName = "lyr" } \lyricmode { a1 b } >> Cheers, Joram