If you expand your BattleLore game beyond the base set, storage does become an issue, and if not thought out, this issue might cause you to have second thoughts about playing the game because of the hassel of organization. I love BattleLore and play it often. I have almost all of the expansions. Here's how I store mine, and this is an easy, organized method that works well to set-up and tear down the game without too much hassel, though there is some minor expense involved.
I purchased several three-tier storage drawers from Wal-Mart (just plastic drawers that slide in and out). I think one of these costs about $6 to $8. I store all of my dwarves in a drawer labeled "The Bearded Brave," all my goblins in a drawer titled "Horrific Horde," and I have three-full drawers filled with humans titled "Code of Chivalry--Infantry," "Code of Chivalry--Cavalry," and "Code of Chivalry--Archers." I mostly play medieval lore adventures, so I purchased my BattleLore expansions with a eye toward building-up my human armies. I also have a drawer for Dragons and Creatures, as well as Heroes, and in my Call to Arms drawer, I keep all the rules and battles booklets. I also purchased some card holders, separating Call to Arms Cards, Command Cards, and Lore Cards. I found that all the rules summary cards (defining specific traits for race, weapon data, terrain rules, etc.) took up a lot of room on the gaming table. To solve this problem, I purchased some three-ring binder sleeves designed to hold collector's cards, such as baseball cards. The summary cards fit nicely into these pages, and they are all neatly organized by topic, so if I need to look up the traits of a mounted knight, or the effects of the mighty bolt thrower, or the rules for marsh terrain, I just flip open this binder and check the card...this is quick and easy, and saves a lot of space.
As to the terrain tiles and other markers, most of these fit into the base set box, but I also purchased a storage container from a hardware store, like those used to sort screws and nails by size. This is a flip-top container, and I keep all the spare parts in this. When I'm ready to play a battle, I just pull out the drawer(s) containing the miniatures I want, and I pull out the cards and my reference book of cards, and I'm ready to go.