Faith and I have two different solutions. Mine isn't perfect by any means, but for me it solves the problem and gets those clanky lids out of my way. I keep my pots on a hanging pot rack, and my lids on top of the rack. With 36" x 18" of horizontal space, it seems silly to keep them anywhere else. Of course, not being seven feet tall, I have to hoist myself up onto a stool in order to access the lids, but I don't mind this occasional ritual.
Tomorrow Faith will show us her lower-to-the-ground solution. In the meantime, tell us your pot lid storage solutions.
Related: Tip: Cork Handles for Hot Lids