Lisinopril should be taken with a full glass of water. I don't think there are any time-of-day advantages, so just space them as evenly as you can.
You should look for the allergic reactions such as hives, rash, throat swelling, difficulty breathing, fever, etc. - the same things you should look out for when starting up on any medicine.
There are some more minor side effects of this drug class, one of which is coughing.