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Nefarian's Lair is, as the name implies, the throne of Nefarian, Lord of Blackrock Spire and the final boss of Blackwing Lair. It is the final named zone in the raid; upon arrival, the players will see Lord Victor Nefarius (the human guise of Nefarian) sitting upon his throne. Speaking to him will begin the encounter.
It is also worth noting that from this zone, one can see out across the Searing Gorge from a very high point of view; fortunately, the game does not allow you to fall off the ledge at any point.