The bust happened on Thursday, June 22, in the 7300 block of Radford Avenue as part of an LAPD narcotics investigation.
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Police said the facility is a warehouse that was converted into a "super lab" used to extract honey oil, also known as hash oil or cannabis oil.
Investigators said the lab posed a serious threat to nearby businesses - including a pet clinic next door - since honey oil labs are known to be dangerous and can sometimes cause explosions.
Two people were arrested and booked into jail without bail. Their identities weren't immediately released.
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Police said it took half a day to dismantle the lab and deem the area safe. One gram of honey oil can sell for as much as $50, investigators said.
LAPD Captain Lillian Carranza said mass production of the oil can bring in thousands of dollars a week.