The ELR is nothing more than the difference in temperature between the surface and the tropopause divided by the height. The ELR assumes that the air is perfectly still, i.e. that there is no mixing of the layers of air from vertical convection, nor winds that would create turbulence and hence mixing of the layers of air. The reason for this temperature difference is that the ground absorbs most of the sun's energy, which then heats the lower levels of the atmosphere with which it is in contact. Meanwhile, the radiation of heat at the top of the atmosphere results in the cooling of that part of the atmosphere.