Animal Lore affects your ability to control a tamed creature, and also improves the amount of damage you can heal via the Veterinary skill.
Animal Lore also counts towards your total Stable Slot limit.
Animal Lore allows you to view Animal and Monster Stats,Skills,Barding Difficulty, Habbits and Bonding Status if applicable. Animal Lore is needed to use bandages effectively on creatures and influences the success you have with giving commands to pets.
See Animal Taming
Animal Lore can also provide invaluable information about the pet bonding process. Pet Bonding
Raising Animal Lore: Animal Lore is an Activated Skill on the standard 10 second cooldown. Animal Lore is not a difficulty based skill.
Gideon's Advice: Use Animal Lore repeatedly on tamed animals in the world until you reach 100 skill. Training Veterinary by bandaging two animals that are fighting while training Animal Lore raises both skills quickly and you will reach GM in no time.