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Write up the lyrics in the usual poetic style (with line breaks and also stanza breaks). Insert in the text by starting a new paragraph then indenting the lyrics on both ends. In a published book...
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#4: Attribution notice removed
Source: https://writers.stackexchange.com/a/39693 License name: CC BY-SA 3.0 License URL: https://creativecommons.org/licenses/by-sa/3.0/
#3: Attribution notice added
Source: https://writers.stackexchange.com/a/39693 License name: CC BY-SA 3.0 License URL: https://creativecommons.org/licenses/by-sa/3.0/
#2: Initial revision
Write up the lyrics in the usual poetic style (with line breaks and also stanza breaks). Insert in the text by starting a new paragraph then indenting the lyrics on both ends. In a published book you might italicize or change the font, but don't worry about that in your copy. If the lyrics are just a short line, you can insert it directly into your text and use quote marks around it. Or italicize.