Lavender essential oil is an aroma therapeutic oil that is extracted from the flowers of the lavender plant. The oil has a calming scent that is used for various purposes, such as reducing stress, improving sleep quality and reducing skin irritation. Lavender oil is also often used as a natural headache remedy and to keep bugs away. Lavender essential oil can be used in various ways, such as applying it to the skin (diluted with a carrier oil), adding it to bath water, or vaporizing it with a diffuser. Lavender essential oil has many benefits for the skin.