I used Orly for the first time a few weeks ago.
I used the RER / Orly Val from Paris and that arrives in Hall 1
I then walked all the way from Hall 1 to Hall 3
I checked in in Hall 3 and was told that the lounge was back in Hall 1
Walked all the way back to Hall 1 !!
It IS the Iberia VIP lounge and it is landside as mentioned. There wasn't much there to be honest but it is a pleasant enough place to have a beer and a snack or two.
BUT....
About 30 minutes before the flight was due to depart - they called the flight in the lounge, they gathered the 5 or so of us heading for London and assigned a nice young chap to escort us to the plane.
The guy came with us all the way from the lounge to plane.
He took us through immigration and through security. He checked our boarding passes himself and handed them to the gate agent. Then he took us down the airbridge asking people to move out of the way until we got to the plane door.
I actually found that to be pretty good service !
I assume it is the normal service there - they were doing the same to the other flights to Madrid etc...
My advice is print the boarding pass, avoid checking any luggage and head straight to the lounge.
I would be surprised if there is any other lounge landside.
Certainly the Iberia lounge is where the guys on the BA check in directed me.
I liked Orly & will use it again.