LILO (LInux LOader) was probably the most well known boot loader around, due to its popularity as the Linux boot loader. It was designed to allow Linux to multiboot and co-exist with other operating systems, such as DOS and Windows.
It was designed, for the most part, to handle Linux and its initrd's, as well as "chain-loading" other boot loaders. To the knowledge of the authors, no "custom" kernel was yet set up to be booted by LILO.
More recently, GRUB started to replace LILO in many Linux distributions because of its higher versatility (and support for custom kernels...).