Lily had used mental transmission to warn Damien while Yuria knocked herself out since she was playing the damsel in distress and Damien was the big bad who kidnapped her.
As for Lily, Olivia and the other emperors, including Ruthren, knew about her relationship with Damien, and surely it didn't really matter if Ruthren saw her being comfortable with her 'kidnapper'.
As for the fate of her empire, she could only bottle up her guilt and wait for the perfect opportunity to dethrone Olivia. However, she was worried about her grandpa, wondering if he would be alright. She truly wanted him to come with her if she was going to leave the Rong Empire, but even now, she had no idea what his decision was.
Damien briefly turned his head to look behind and said casually, "Oh, the strongest emperor in town isn't as fast as I thought, tsk, tsk."