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The creature does not resemble to its supposed namesake, and is very much like an African male lion and a Goldfish.
In the episode, "Spongicus," it chased Patrick for having a bunch of sausages around his neck (it is the lion fish's favorite food). SpongeBob takes the sausages around Patrick's neck and throws it to the lion fish, which hit Plankton. This caused the lion fish to chase Plankton. It is later seen at The Krusty Krab, working as a "financial expert" of Mr. Krabs, which he uses to scare customers into buying Krabby Patties, now for 10 dollars.