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In Season 2, we meet L's successors, "M" (Mellow) and "N" (Near). Seeing how they are his successors and were all raised in the same institute, L must also stand for something.

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In the manga and the anime doesn't reveal what L stands for, but in a especial edition called "Death Note 13: How to Read", reveal that L real name is

L Lawliet or in japanese, Eru R├Áraito.

Reference: http://deathnote.wikia.com/wiki/Death_Note_13:_How_to_Read

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