Authorities say a cyclist spotted the body in the grass at about 5:30 a.m. on Deodar Drive and Live Oak Lane.
While investigators would not say how the woman died or what kind of injuries she suffered, they say they believe she was the intended target.
"Based on the information that we have, we do not feel that there's any threat to the community," said Lt. Jeff Hallock of the Orange County Sheriff's Department.
Hallock says it is still unclear if the victim was killed at the location or if she was killed somewhere else and then dumped in front of the house.
According to neighbors, the house that the body was found in front of has been up for sale for at least a couple of months, but the home is occupied.
The woman has not been identified. Residents who saw the body said they do not recognize the woman.
The name of the suspect in custody has not been released, but authorities say he is a Yorba Linda resident. It was not yet clear what the relationship is between the suspect and the victim.