Let $M$ be a smooth manifold and Diff($M$) be its diffeomorphism group. Let $N\to M$ be a finite cover (for example an orientable double cover if $M$ is not orientable). Then what is the relation between Diff($N$) and Diff($M$?
Is it true for example that Diff($N$) injects in Diff($M$)? If the cover is canonical in some sense (e.g. universal), is it true that the action of any group on $M$ lifts to $N$?
Group actions on $M$ fail to lift to $N$ even for one of the most fundamental examples, namely the universal covering map $f : \mathbb{R} \mapsto S^1$ given by the formula $$f(t)=e^{2\pi \, t \, i} $$ For example, the group of rotations of $S^1$ does not lift to $\text{Diff}(\mathbb{R})$. This is true even though every individual rotation does lift, the trouble being that the lifts of elements are not unique, and cannot be chosen so as to preserve the group operations.
To be specific, letting $\rho : S^1 \to S^1$ be the rotation through angle $\pi$, it follows that $\rho^2 = \rho \circ \rho=\text{Id}$. But the lifts of $\rho$ are precisely the translations of $\mathbb{R}$ of the form $r(t) = t + (2k+1)\pi$, $k \in \mathbb{Z}$, and so $$r^2(t) = r \circ r(t) = t + (4k+2)\pi $$ which is not the identity, no matter what the value of $k$ is.