Sounds interesting.
I’m not sure exactly what you’re thinking of for the lace pattern but it should work just fine in the round and then flat. You would do that if you were knitting a bottom-up, lace sweater in the round and switching to flat after the armholes.
If you’re thinking about a stockinette stitch background for the lace pattern, you would do a row of the lace pattern in the round and then maybe a row or more of knit sts. When you switch to knitting flat, you could keep the lace pattern rows as right side rows and use purl rows on the wrong side.
Just keep the in-the-round portion an even number of rows for a set. So Round 1: YO, K2tog; Round 2: Knit; Round 3: Knit; Round 4: Knit.
That allows you to keep the YO row on the right side when you switch to knitting flat.
Row 1 (RS): YO, K2tog; Row 2 (WS): Purl; Row 3 (RS): Knit; Row 4 (WS): Purl
Doesn’t matter how you set up the sequence. You just want to make it an even number that allows you to keep the YOs on the right side once you move to knitting flat.