Li and Lo - Imperial Concubines
Or things that we can totally sneak past the censors if we never say them outright.
First, Id like you to take a close look at the number of layers on Li and Los robes: Three.
The only people we ever see wearing three layers like that is the Fire Lord and Iroh as General in the field (when he was still crown prince) i.e. high ranking Fire Nation royalty.
So what does that mean: Li and Lo have to be high ranking.
Zuko, even as crown prince Ozai you dick only gets two layers. The same goes for Azula.
Yet Li and Lo are never addressed as family, no title of cousin, aunt, grandma etc. Iroh, on the other hand is frequently referred to as uncle, as is Lu Ten as cousin.
Neither do they seem to hold a court title. They are not Sifu Li and Lo, even though they supervise Azulas firebending training. They are not addressed as minister or general or get any other title throughout the series but their names.
Taking into account their high rank, and how trusted they are, as well as the official duties (Like welcoming the prince and princess back) they have, the conclusion I have come to is that their title was omitted to sneak it past the censors.
Also noting that we get specifically told how hot they were when they were young, my conclusion is that they were Azulons concubines.
And later Ozais since traditionally in Imperial China the heir did inherit the concubines of his father XD and then Azula, and then Zuko.
Not inherit in that way, you pervs, that was rare (but did happen occasionally). But in the keep living at court kind of way.
Empress Wu (625-706)
Wu became a junior concubine at the age of twelve. When her Emperor died, she became the concubine of his successor, and later his Empress.