Is it correct to use "they/them" when it's not about people? For example:

I dropped all the books; they lay on the floor.


Yes, it's correct since in your sentence they means the subject of the first sentence- books. And there's nothing wrong in using they/them for referring to non-human objects like books.

But I must say, the sentence seems a bit off. You can alternatively say it as:

I dropped all the books on the floor.

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