is this lavender being grown as a houseplant??

ken

Yes. Is that bad?

It's not good :-) Plants that grow outdoors in temperate climates - like lavender - make very poor houseplants. Light conditions are too low and temperatures are too constant. I normally add that humidity is too low also but that's not really a concern with lavender.

I doubt what you're looking at is a disease - more likely to be an insect issue. Because of the spotting/stippling on the foliage, I'd guess mite damage, perhaps even spider mites (do you see any webbing in the stems?). Mites love the warmth and low humidity of indoor growing conditions but are seldom (maybe never) an issue on lavender grown in the garden.

This plant would be far happier and much healthier if it could be planted outside. Full sun, well drained soil, minimal watering and no fertilizer. At the very least, I'd treat with neem oil to get rid of the mites and any other insect problems. If you must keep indoors, keep on the dry side and in the brightest light you can muster.

Thank you for your input. I keep my lavender on the sunny side of my apartment. Now, in summer, the plant was pretty happy until these little bugs came around.

I will try one method and will see how it goes. If nothing changes, will get rid of everything. Thank you!

...but pls don't give up on having plants inside, in general, if you are starting to think that nothing could do well. Plants traditionally kept inside as house plants are much more amenable to being in a pot inside. (Bringing any other plants inside during a pest invasion is not advised though.) There's an active house plant forum here, if the idea appeals for further investigation.