The 25-year-old follows fellow new recruit Tom Elliott at the Sky Bet League Two club having made 41 appearances last season for the Iron and Partick.
Boss Neal Ardley relieved he had identified Taylor, who only signed for Scunthorpe last summer, as one of his main targets.
“I am absolutely delighted because I did not think I would be able to get this one over the line,” Ardley told the club’s official website.
“We needed to do great work behind the scenes, in particular from our chief executive Erik Samuelson, who was fantastic, to get this deal done.
“When I sat down with (coach) Simon Bassey in May to discuss what we wanted, both Lyle and Tom Elliott fitted the criteria we were looking for. They were first choices in terms of the strikers we were trying to bring in. There were times when I felt we were not going to get either of them, but we have shown a lot of patience.
“A lot of people in June were asking where all the signings where, but I think it is so important to stick with what you initially want until it is dead in the water. I am excited by what they can both do. When we profiled the categories we wanted to put into the team, we wanted more pace and power up front and these two will tick those boxes.
“Tom is big, strong and powerful, but Lyle is different. He has very good movement and technique and his finishing is very good. Lyle is also 6ft 2ins, quick, and he wants to play on the shoulders of defenders.
“He wants to gamble on things and get in behind and that is what we are trying to teach Tom, who has always been a target man. I think they can scare defences and that is what we are looking for.
“I was interested in Lyle as soon as I heard that Scunthorpe might want to let him go because they were bringing in other strikers. I must have watched footage from between 10-12 games and the more I watched the more it convinced me that he was a player I wanted to sign.”