I have tried and tried again to understand coalgebraic logic (generalization of modal logics) but I can not understand the notions "predicate lifting" and "relation lifting". Are there explanations and illustrations for those notions, is this notion used outside coalgebraic logics community?
Chapter 6 of http://www.cs.ru.nl/B.Jacobs/CLG/JacobsCoalgebraIntro.pdf is about predicate lifting, but the notion seems to be so remote from everything that I know. Can someone, please, reformulate this notion in more understandable terms?
Before going fully general with fibrations, one can understand predicate liftings entirely in sets. I'm writing $2^X$ for the set of predicates on $X$, that is, characteristic functions $X\to 2$ assigning every element of $X$ to its truth-value (i.e. whether the predicate holds or not).
In this sense, a predicate lifting for a functor $F: \mathsf{Set}\to\mathsf{Set}$ is a natural transformation $\lambda_X: 2^X \to 2^{FX}$, that "lifts" predicates from the set-level ($2^X$) to a predicate on functor elements ($2^{FX}$). If you have a predicate $P\in 2^X$, then $\lambda_X(P)$ is a predicate on $FX$. In coalgebraic modal logics, the predicate liftings provide the semantics to modal operators. For example, the modal formula $\Diamond\phi$ means that there is some successor (or "next world") satisfying $\phi$. If $P$ captures the semantics of $\phi$, then a predicate lifting $\lambda$ for $\Diamond$ would send $P$ to $\lambda_X(P)\in 2^{FX}$ and $\lambda_X(P)$ intuitively has those successor structures $s\in FX$ in which at least one successor satisfies $P$ (i.e. $\phi$).
If $\mathcal{P}$ denotes the (covariant) power set functor, then you can implement the predicate lifting for $\Diamond$ as $$ \lambda_X(P) = \{ s \in \mathcal{P}X : \exists x\in s\colon x\in P\} $$ Different modal operators have different semantics of course, and for $\Box\phi$ (all successor worlds satisfy $\phi$) one would define a predicate lifting as follows: $$ \lambda_X'(P) = \{ s\in \mathcal{P}X : \forall x\in s\colon x\in P\} $$ Instead of $\mathcal{P}$ you can put in other functors $F$ of course (with adjusted definitions of $\lambda_X$ and $\lambda_X'$).
Such a predicate lifting $\lambda_X$ 'lifts' the functor $F: \mathsf{Set}\to \mathsf{Set}$ to a functor $\bar F: \mathsf{Pred}\to \mathsf{Pred}$ on the category of predicates, which is a fibration over $\mathsf{Set}$. In the text you linked it seems that another generalization is done: $2^{(-)} = hom(-,2)$ gives rise to a fibration, and so you can generalize the truth values $2$ or even the base category.