In a mixing bowl, combine the warm water, sugar, and active dry yeast. Stir gently and let it sit for about 5 to 10 minutes until it becomes frothy.
In another large bowl, whisk together the all-purpose flour and salt.
Once the yeast mixture is frothy, pour it into the bowl with the flour mixture along with the olive oil. Stir with a wooden spoon until the dough begins to come together.
Transfer the dough onto a floured surface and knead it for about 8 to 10 minutes, or until it becomes smooth and elastic.
Place the kneaded dough into a lightly oiled bowl, cover it with a kitchen towel, and let it rise in a warm place for about 1 hour or until it has doubled in size.
Once the dough has risen, punch it down to release the air. Divide it into equal portions, about 8 pieces, and shape each piece into a ball. Let them rest for an additional 10 minutes.
On a floured surface, take one ball of dough and roll it out into a circle about 1/4 inch thick. Repeat this step until all the dough balls are rolled out.
Heat a skillet or griddle over medium-high heat. Once hot, place the rolled-out dough onto the skillet. Cook for about 1-2 minutes on each side, or until you see bubbles forming and the bread has golden spots.
Once all the gyro bread is cooked, stack them on a plate and cover them with a kitchen towel to keep them warm and soft. Serve with your favorite gyro fillings.