Linux can be booted from a plain floppy or using loadlin. All this is unrelated to LILO but it is good to know. Assuming your Linux root partition is /dev/hdaX...
To create a simple boot floppy, just do
To boot with loadlin (a DOS program), just copy the kernel file to your DOS partition and type, at the DOS prompt:
loadlin zimage root=/dev/hdaX ro