Make the lentils and rice: Heat the olive oil in a large pot with a lid over medium heat. Add the diced red onion and minced garlic and sauté until translucent, about 5 minutes.
2. Step
Add the water, lentils, and salt and bring to a boil. Cover with the lid and simmer for 10 minutes.
3. Step
Meanwhile, make the caramelized onions: Heat the olive oil in a large skillet over low heat. Add the sliced onion and cook, stirring frequently to prevent burning, until completely soft, dark brown, and caramelized, 25–30 minutes.
4. Step
Add the rice, cinnamon, cumin, and bay leaf to the pot with the lentils. Stir to combine. Cover again and cook for about 15 minutes, until the rice is tender.
5. Step
Serve the lentils and rice topped with the caramelized onions and parsley, with lemon wedges and Greek yogurt alongside, if desired.