How to make Lavender Oil at home, extremely easy process. Lavender Oil: An analgesic (pain reliever), antiseptic (antimicrobial applied to living tissue/skin to reduce possibility of infection) & immune stimulant, promotes healing, especially in burns, bruises, scrapes, acne, rashes & bug bites. Lavender has a calming effect, is used for insomnia, stress & depression. Also used as a decongestant through steam inhalation - 1 drop per cup of steaming water. Can be taken internally.