"I can't play at 100 percent if that stuff happens - and then you expect me not to be angry", Kyrgios told Lahyani.
"My shoulder started to hurt in the practice today, which didn't help either, and once I lost the first set I was just not strong enough to continue because I've not eaten much for the past 24 hours".
Last year, Kyrgios was suspended by the men's tour for tanking a match and insulting fans following a second-round loss to German qualifier Mischa Zverev at the Shanghai Masters.
Nick Kyrgios faces the prospect of another season-ending ban after branding an official "a joke" before sensationally quitting his first-round match at the Shanghai Masters.
Also, big-serving American John Isner beat Serbian qualifier Dusan Lajovic 4-6, 7-6 (5), 7-6 (6) on a day with temperatures soaring past 32 degrees Celsius.
"I'm gutted to be honest as I was keen to keep the good momentum that I built in Beijing going and finish the year strong". Albert Ramos-Vinolas got the better of an all-Spanish affair, defeating seventh seed Pablo Carreno Busta 7-5 7-5 while Fabio Fognini ousted Pouille 7-6 (9-7) 6-3.
Ballon d'Or 2017: Nominees revealed - Harry Kane, Philippe Coutinho and Neymar feature
The Portugal superstar lifted his fourth Ballon d'Or past year and another win would bring him level with Barcelona legend Messi. Despite spending the majority of 2017 as the worlds most expensive player, Manchester United midfielder Paul Pogba misses out.
World number 19 Kyrgios matched Nadal early on, winning his opening two service games but became involved in a debate with umpire Mohamed Lahyani over a close line call against him.
Kyrgios was leading 4-2 in the tiebreaker before losing a rally and then copping his point penalty then gesturing to his box: "What is he doing?".
Another weighed in with: "He said if he loses this set, he's retiring". After a challenge, it turned out the ball was in - chair umpire Mohamed Lahyani made a awful decision to replay the point. The Briton got to his feet to win the next point, but a forehand into the net set up match point and Cilic's assured volley sealed a 6-3 7-6 (7-5) success.
He was sitting 15th in the Race to London, where the top eight players of the year will assemble for the prestigious round-robin event.
Local media reported that Kyrgios received two code violations during the set and was docked a point in the tiebreak.