Lich Yard Encounter is a loot stage (signified by a Goldarmor on the map) that is unlocked after defeating the second quadrant. The stage has the same tileset as The Lich Yard but with different enemies and challenges. Like the other loot stages the only rewards are treasure; this level exists solely to pad Shovel Knight's wallet.
Since it is similar with The Lich Yard, the encounter is mostly in darkness.
- Opposed to common thought, this encounter does not spawn after defeating Specter Knight.