Frescobaldi has a nifty tool for setting hyphens automatically in Lilypond lyrics. For this purpose it uses hyphenation dictionaries included in myspell, OpenOffice etc. As the locations for these resources vary between distributions, frescobaldi is likely to not find the dictionaries automatically: you have to set the paths by hand in Tools->Configure Frescobaldi…->Paths and, if you don't know the location, look for the hyphenation dics in the file list in YaST-> software. I had no luck with myspell (frescobaldi didn't list any languages), but after installing OpenOffice_org-hyphen I found appropriate files in /usr/share/ooo/hyphen and automatic hyphenation worked reasonably well (didn't hyphenate "buia" and couldn't do vowel slurs/elisions, of course).
Did I mention that I like Frescobaldi?