On systems with more than two disks, typically only the first two can be accessed. The configuration choices are therefore the same as with two disks.
When attempting to access one of the extra disks, LILO displays a warning message ( Warning: BIOS drive 0x number may not be accessible) but does not abort. This is done in order to allow the lucky few whose BIOS (or controller-BIOS) does support more than two drives to make use of this feature. By all others, this warning should be considered a fatal error.
Note that the two disks restriction is only imposed by the BIOS. Linux normally has no problems using all disks once it is booted.