Stephen Tashi said:
Is the "material derivative" of fluid mechanics a special case of a Lie derivative? Or is it yet another kind of derivative?
Good question.
For simplicity sake let's consider a stationary flow of a fluid with velocity field ##v=v(x),\quad v=(v^1,\ldots,v^3)(x).##
Let ##g_v^t(x)## stand for corresponding one-parametric group:
$$\frac{d}{dt}g_v^t(x)=v(g_v^t(x)),\quad g_v^0(x)
=x.$$
Then take a smooth manifold ##S\subset \mathbb{R}^3,\quad \mathrm{dim}\,S=k##. The manifold ##S## can be a curve (k=1), a surface (k=2), or a domain of ##\mathbb{R}^3## (k=3) and let ##\omega## stand for a ##k-##form in ##\mathbb{R}^3##.
Theorem. The following formula holds
$$\frac{d}{dt}\Big|_{t=0}\int_{g^t_v(S)}\omega =\int_SL_v\omega,$$ here ##L_v## is the Lie derivative.
This very simple theorem remains true in all dimensions, not only in ##\mathbb{R}^3##.
For example, let ##\rho(x)## be a density of the fluid and let ##\Omega =\sqrt gdx^1\wedge dx^2\wedge dx^3,\quad g=\mathrm {det}(g_{ij}(x))## be the volume form; ##g_{ij}## is a metric tensor. Then the mass conservation law is written as follows
$$\int_{g^t_v(D)}\rho\Omega =const,$$ here ##D## is an arbitrary volume and the constant does not depend on time but it surely depends on ##D##.
Applying the above theorem we get
$$\frac{d}{dt}\Big|_{t=0}\int_{g^t_v(D)}\rho\Omega=\int_DL_v(\rho\Omega)=0.\qquad (*)$$
It is not hard to show that ##L_v(\rho\Omega)=\mathrm{div}\,(\rho v) \Omega## and sinse ##D## is an arbitrary volume, formula (*) gives the standard continuity equation: ##\mathrm{div}\,(\rho v)=0.##
In the same way Helmholtz's theorems
https://en.wikipedia.org/wiki/Helmholtz's_theorems and many other useful things from Hamiltonian dynamics follow.
(I have dropped math details such as smoothness of ##v##, finite measure of ##S,D## etc)