In a small bowl, combine the warm water and sugar. Sprinkle the active dry yeast over the top and let it sit for about 5 to 10 minutes until frothy.
In a large mixing bowl, whisk together the all-purpose flour and salt.
Once the yeast mixture is frothy, add it to the flour mixture along with the olive oil. Mix until a shaggy dough forms.
Transfer the dough onto a floured surface and knead for about 8 to 10 minutes until smooth and elastic.
Shape the kneaded dough into a ball and place it in a lightly oiled bowl. Cover with a kitchen towel and let it rise in a warm place for about 1 hour.
Once risen, punch down the dough, divide into 8 pieces, and roll each into a circle about 6 inches in diameter.
Preheat a skillet or griddle over medium-high heat. Cook each piece of dough for about 2-3 minutes on each side.
Keep the cooked gyro bread warm by covering it with a kitchen towel.