Wayne and I hiked the 1.5 mile loop trail around the lake in 2009, and the pictures above are from that hike. My Mom and I hiked around it in 2011 in the early morning. My advice would be to check it out in the late morning or in the afternoon as it was too shadowy and chilly before the sun got a chance to reach it.
Both Sylvan Lake and the Needle's Eye are located along the Needles Highway. Don't bring your RV on this road, tight turns and narrow rock tunnels are part of the 14 miles of breathtaking scenery. It was completed in 1922 and definitely isn't for anyone in a hurry, so slow down and enjoy the ride. Going through the 8' 4" wide by 12' 0" high Needles tunnel we had to pull in the mirrors on our truck and hold our breath, but seeing the Needle's Eye granite formation on the other side was worth it.