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Heat butter and olive oil in a large, deep saute pan over medium heat. Add the onions, toss to coat them in butter and oil and cover the pot. Reduce the heat to medium-low and let the onions slowly steep for 15 to 20 minutes.
Uncover the pot, raise the heat to medium-high and stir in salt. Cook onions, stirring every few minutes until the onions are brown, soft, and sweet, about 20 minutes more.
Preheat the oven to 375°F (190°C).
Add garlic to the onions and cook, stirring, for one minute. Add sherry, if using, and cook until it disappears. Add the farro and cook for 2 minutes. Add lentils and 6 cups broth and thyme and bring the mixture to a simmer. Season well with salt and pepper as needed.
Cover the pan and bake, stirring about halfway through, until the lentils and farro are tender, 40 to 50 minutes. If all of the liquid has absorbed, add another ¼ to ½ cup splash of broth.
Sprinkle the dish with gruyere and broil until browned on top.