Lydiate, who made three appearances for the Lions against Australia last summer, suffered a serious neck injury as a teenager.
And the flanker admits Williams' setback puts rugby into perspective.
"I am gutted for Owen. I don't know too much about what happened but all our thoughts and prayers are with him and his family," he told Wales Online.
"All the rugby community around the world are rallying around Owen.
"It's never nice to hear when something like this happens. He's such a nice guy.
"Hopefully he has a speedy recovery and it's good news but we will have to wait and see.
"It puts things in perspective. We were gutted about losing a rugby game against South Africa but when you hear the news on the way home about Owen, you realise it's just a game and there are more important things."