I don't know how the UK House of Lords works, so you'll have to explain that first.
The House of Lords almost wholly consists of members theoretically appointed by the Queen, but the actual choices are made by the Prime Minister. So, to answer 9iron's question, the Senate is indeed, in this respect, similar to the Lords; the Governor General makes the appointments on the Prime Minister's advice.
Of course, there are a few differences; for example, the Canadian Senate does not include bishops of the established church (as there is no such church in Canada).