The Bianconeri were 1-0 down from the first leg which took place months ago, and although they won the second leg 2-1 thanks to two goals from Cristiano Ronaldo, an away goal for Lyon via a Memphis Depay penalty proved the difference.
Sarri recently guided Juve to their ninth title in a row, although in a more unconvincing fashion in most of the previous eight.
The former Napoli boss has never been far from criticism this campaign.
Due to their domestic dominance, the Champions League has become somewhat of a holy grail for the Juve hierarchy, with the signing of the tournament’s greatest ever goalscorer, Ronaldo, meant to power them to European glory.
However, they have failed to make an impact on the latter stages of the competition since his arrival, being knocked out in the quarter-finals by Ajax in the 2018-19 season before the loss against Lyon, one round earlier, a year later.
The Argentine has been without a club since leaving Spurs in the middle of last season.