Lacey understands that he is missing out on some joy in his life, that is when he realizes that he feels affection for the dog. When Mr. Lacey is at the pound he sees what he is putting the dog into. When he says that when he saw the pound that it was the worst looking place that he’d ever seen. That may have two different meanings. Either Mr. Lacey’s opinion of a good looking place is a very high expectation. Or maybe because he feels affection for the dog he doesn’t want to give it up but doesn’t want to Doris or his wife to know.
Mr. Lacey overall is a character who changes his views on the dog throughout the story. He shows this in a variety of ways, not giving the dog to the pound, having sympathy for it by letting it sleep with them for about a week. Even though he shows sympathy for it does he truly feel affection for it? Could it be