Lloyd was used exclusively as a relief pitcher during his ten years in the major leagues. He ended his career with 30 wins against 36 losses, 17 saves, and 97 holds. At his peak, Lloyd threw a sinking fastball that reached 90 miles (140 km) per hour and a slider. Later in his career, he added a palmball to his repertoire.
For much of his career, he was used as a matchup lefty, or LOOGY (lefty one out guy). This type of pitcher is used against an opposing team's star left-handed hitter(s) late in a game. Lloyd excelled in this role for the New York Yankees in 1998 when he posted a career-best 1.67 ERA. This effectiveness led to the Toronto Blue Jays demanding that Lloyd be included in a package anchored by starting pitcher David Wells when the Yankees traded for Toronto starting pitcher Roger Clemens.
Lloyd represented his native Australia at the Olympic Games in Athens in 2004. His teammate Dave Nilsson had made history with him ten years earlier, when, on 13 April 1994, the men formed the first all-Australian battery in an MLB game.
Lloyd's wife Cindy suffered from Crohn's disease, which she succumbed to in 2000 at the age of 26. In 2000 and 2001, Graeme acted as the spokesman for the Graeme Lloyd and Jon Mechanic Field of Dreams, a charity which was dedicated in the name of Cindy Lloyd.