Loke is very flirtatious with any and all attractive women, though he is very wary of Lucy because of her status as a Celestial Spirit wizard. He avoids her at all costs, but eventually confides in her that he is actually Leo of the Lion Palace, a traitorous Celestial Spirit banished to the human world for inadvertently killing his previous master, Karen Lilica, by forcibly drawing out his contract to make sure that she did not abuse any more spirits. He was slowly dying due to spirits being unable to stay in the human world for long, and when he becomes ready to accept his fate, Lucy convinces him and the Spirit King that he did the right thing. He forms a contract with her to thank her, and becomes able to forcibly summon himself to protect her.
Wikipedia