This song is about a man at a church, asking for forgiveness but finding none. Everybody thinks he is a liar and that nobody can ever believe him again because of what he has done.
Clearly the band were quite proud of "Liar," as it was one of the few songs from their first two albums which remained in their set in one form or another for many years - mostly as a brief interlude. For example, on the 1986 Magic tour, the intro riff was used as a segue between "Seven Seas of Rhye" (another early song) and "Tear It Up," and large parts of the song were performed at shows in 1984.
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