Lasing from an erbium-doped high-Q silica toroidal microcavity coupled to a tapered optical fiber is demonstrated and analyzed. Average erbium ion concentrations were in the range 0.009-0.09 at. %, and a threshold power as low as 4.5 W and an output lasing power as high as 39.4 W are obtained from toroidal cavities with major diameters in the range 25-80 m. Controlling lasing wavelength in a discrete way at each whispering-gallery mode was possible by changing the cavity loading, i.e., the distance between the tapered optical fiber and the microcavity. Analytic formulas predicting threshold power and differential slope efficiency are derived and their dependence on cavity loading, erbium ion concentration, and Q factor is analyzed. It is shown that the experimental results are in good agreement with the derived formulas.