You can setup an instance and see how well it works. Of course js is required for now (but you could use a mobile/desktop Lemmy app over Tor). For federation it would probably be necessary that peer instances also have Tor installed, to resolve .onion Urls. Or use a clearnet domain for federation.
this post was submitted on 14 Jan 2022
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I think it's possible to host a lemmy instance over TOR, though I'm not sure if you could federate with clear net instances over Tor. There is also Lemmy Lite, which is a JS-less interface for lemmy instances. Their repo is a bit stale but in theory it should still work with modern versions of lemmy.