The Tigers on Friday ended conjecture around Lynch's playing future, announcing a deal that will extend the two-time premiership star's career into a 16th AFL season.
It comes as Lynch prepares to return to action against St Kilda at the MCG on Saturday, having served a five-match ban for striking Adelaide's Jordon Butts.
Lynch apologised to teammates immediately after the incident, which was addressed further internally at the time.
Richmond coach Yze urged Lynch to make amends over the final three weeks of the season, but doesn't want the 32-year-old to go into his shell.
"We love the fact that he's got white-line fever and he plays on the edge," Yze said.
"Our younger forwards need to know what it is to compete on an AFL field.
"But it spilled over and the action was wrong, and our younger players needed to know that.
"He knew that he did the wrong thing and he copped his right whack through suspension.
"He wore that and he owned it, so right now he's going to try to repay the faith and hopefully make amends in the last three games."
Yze forecast Lynch playing beyond 2026, likening his situation to that of Collingwood's evergreen veteran Scott Pendlebury, who has signed a series of one-year contracts in the twilight of his career.
He also suggested fellow Tigers premiership hero Dion Prestia is on the verge of re-signing, despite the 32-year-old being limited to just nine games so far this season.
"Hopefully it will get resolved in the next week or so, but we know that he's a required player," Yze said.
"I think we've put something to him, he'll have a think about it, which is great."
Lynch will return alongside fellow experienced heads Nathan Broad and Tim Taranto on Saturday, bolstering the Tigers as they attempt to rebound from last round's 84-point thrashing from Gold Coast.
Richmond (5-15) and St Kilda (7-13) are both out of finals contention, but the Saints are riding high on the back of consecutive wins inspired by Nasiah Wanganeen-Milera.
Like Hawthorn's Sam Mitchell before him, Yze said the St Kilda superstar had been giving him nightmares during the planning process.
"He had me up at two o'clock this morning thinking about it," Yze said.
"But we're in a process right now where we want to play a certain way and we'll go in backing ourselves and backing our system.
"We'll keep an eye on how much impact he's having."
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