Club lie angle is created by the shaft and sole of the golf club. Basically, how the club sits on the ground. It is determined by swing plane not the golfers height or arm length.
The best lie angle for you is one that allows the club to impact squarely on its sole when you strike the ball. Incorrect lie angle will adversely affect your ability to move the ball down the target line.
Proper lie angle will help you keep the club face square at impact and produce more accurate golf shots. Lie angle also affects where on the club face you will strike the ball.