Lucoa's main conflict within herself stems from the fact that she's finding it harder and harder to be a mere Spectator when her friends are in danger. In her own way, she tries to remain aloof from their activities against each other, but lately she's become really depressed about it. She knows that she could tip the scales in any battle (like in chapter 76), if not finish it outright, but doing so would pretty much cost her everything. Though truly she has little to fear from either of the dragon factions, I'm going to guess that all of the gods are Spectators, and would therefore come after her for involving 'them' in any major war.
I'm pretty curious about the realm Lucoa (and other gods) and the dragons come from. Was it ever given a name? Considering how many deities have existed in human history, have they all separated the realm into areas of control? The god that Tooru faced off against in the beginning looked like it could have been Odin.