Mandus sometimes addressed his notes to her and voices the desire to resurrect Lily using alchemy, but also acknowledges it is too late for that. He believed this gave birth to the 'egg of his soul,' as The Engineer says.
Her death is implied to have 'caused a crack in Oswald's soul,' as he both loved and hated the twins so greatly for killing her. Lily died from childbirth, living only long enough to meet the first twin, and was subsequently buried by her husband, Oswald Mandus.
Photograph in the bathtub of a nude woman, thought to be Lily Mandus herself, found near the one-way mirror to the bathroom, in Oswald's Mansion.