I'm not sure if Cakewalk is the best program for entering lyrics. I have used it and basically you need to have or create a "vocal melody track". You can then assign lyrics to the melody notes. The melody must be as accurate as possible to permit the lyrics to display properly. Here's the explanation from the Cakewalk web site.

Entering Lyrics From the Staff View

Cakewalk has the ability to add lyrics directly to the Staff View. To do so, select the Pencil tool and move the cursor underneath the lowest note on the staff. Continue to move the cursor down until the pencil appears with a capital "T" next to it; then click. If the cursor is properly positioned under the note, you will see an insertion box. If not, another note will be added (simply use the Undo feature to delete the unwanted note).

After typing each word, press SPACEBAR to advance the editing bar to the next associated note. Use hyphens to separate a word by syllables. Each syllable will be aligned with a single note in that track.

Editing Lyrics

If you change your mind or misspell a word, simply click on the word to be changed. The editing box reappears around that word, the word is highlighted, and you can change or edit it as you please. You can use the Erase tool to delete lyrics as well as notes.

You can use the TAB key to select the next word, or SHIFT+TAB to select the previous word.

Hope this helps, Vic