I never knew the difference between lager and ale, I actually didn't know there is such, until I started working in a pub. Lager yeast ferments at a much colder temperature than ale yeast and settles on the bottom of the fermenting tank. As far back as the sixteenth century, Bavarian brewers made beer in this way, storing it in caves and some cellars, ofter under blocks of ice, allowing it to self-filter.
Because of the low temperature required, it wasn't until the advent of the refrigerator that lager was brewed in London, some time during 1880s.
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