One of the more honest options on the main square, The Village Taverna serves straightforward Greek food at prices that are reasonable by Lindos standards. The meze plates are a good way to eat here — order several small dishes rather than a main course and you get a better sense of the kitchen. The grilled halloumi, the tzatziki made with real strained yoghurt, and the calamari (lightly battered, not the frozen rings) are all dependable.
The setting is the draw as much as the food: the courtyard is paved in the traditional black-and-white chochlakia pebble mosaic, and in the evenings the overhead vines provide shade while the donkeys occasionally process past on their way to and from the Acropolis. A solid, unpretentious option for lunch or early dinner.