[proofplan]
We prove by transfinite induction on the ordinal $\alpha$ that $L_\alpha$ is transitive. The base stage is empty. At a successor stage, definability over $L_\alpha$ ensures every element of $L_{\alpha+1}$ is a subset of $L_\alpha$, while the induction hypothesis ensures elements of $L_\alpha$ are themselves definable subsets of $L_\alpha$, so they lie in $L_{\alpha+1}$. At a limit stage, membership in $L_\lambda$ occurs already at some earlier stage, where the induction hypothesis applies. Finally, transitivity of the class $L$ follows by choosing a stage containing the outer element.
[/proofplan]
[step:Establish the base stage]
The set $L_0 = \varnothing$ is transitive. Indeed, to verify transitivity, suppose $x \in y \in L_0$. Since no such $y$ exists, the implication defining transitivity is satisfied.
[guided]
We recall that a set $A$ is transitive if for all sets $x$ and $y$,
\begin{align*}
x \in y \in A \implies x \in A.
\end{align*}
For $A = L_0 = \varnothing$, there is no set $y$ with $y \in L_0$. Hence the antecedent $x \in y \in L_0$ is never satisfied. Therefore the transitivity condition holds for $L_0$.
[/guided]
[/step]
[step:Pass transitivity from $L_\alpha$ to $L_{\alpha+1}$]
Let $\alpha$ be an ordinal and assume as the induction hypothesis that $L_\alpha$ is transitive. We prove that $L_{\alpha+1}$ is transitive.
Let $x$ and $y$ be sets with $x \in y \in L_{\alpha+1}$. Since
\begin{align*}
L_{\alpha+1} = \operatorname{Def}(L_\alpha),
\end{align*}
the set $y$ is a definable subset of $L_\alpha$. In particular,
\begin{align*}
y \subset L_\alpha.
\end{align*}
Because $x \in y$, it follows that $x \in L_\alpha$.
It remains to place $x$ in $L_{\alpha+1}$. Since $L_\alpha$ is transitive and $x \in L_\alpha$, every element of $x$ lies in $L_\alpha$, so
\begin{align*}
x \subset L_\alpha.
\end{align*}
Moreover, $x$ is definable over $(L_\alpha,\in)$ using the parameter $x \in L_\alpha$: it is the subset of $L_\alpha$ defined by the formula $z \in x$. Hence
\begin{align*}
x \in \operatorname{Def}(L_\alpha) = L_{\alpha+1}.
\end{align*}
Therefore $L_{\alpha+1}$ is transitive.
[guided]
Assume $L_\alpha$ is transitive. We must show that $L_{\alpha+1}$ is transitive, so take arbitrary sets $x$ and $y$ satisfying
\begin{align*}
x \in y \in L_{\alpha+1}.
\end{align*}
By definition of the constructible hierarchy,
\begin{align*}
L_{\alpha+1} = \operatorname{Def}(L_\alpha).
\end{align*}
Every member of $\operatorname{Def}(L_\alpha)$ is, by definition, a subset of $L_\alpha$ definable over the structure $(L_\alpha,\in)$ with parameters from $L_\alpha$. Since $y \in \operatorname{Def}(L_\alpha)$, we have
\begin{align*}
y \subset L_\alpha.
\end{align*}
Now $x \in y$, so the inclusion $y \subset L_\alpha$ gives
\begin{align*}
x \in L_\alpha.
\end{align*}
The last point is slightly important: from $x \in L_\alpha$ we still need $x \in L_{\alpha+1}$. This is where the induction hypothesis is used a second time. Since $L_\alpha$ is transitive and $x \in L_\alpha$, every element of $x$ belongs to $L_\alpha$. Thus
\begin{align*}
x \subset L_\alpha.
\end{align*}
Because parameters from $L_\alpha$ are allowed in the definition of $\operatorname{Def}(L_\alpha)$, the subset $x$ of $L_\alpha$ is definable over $(L_\alpha,\in)$ using the parameter $x$ itself, namely by the formula $z \in x$. Therefore
\begin{align*}
x \in \operatorname{Def}(L_\alpha) = L_{\alpha+1}.
\end{align*}
Since arbitrary $x \in y \in L_{\alpha+1}$ implies $x \in L_{\alpha+1}$, the set $L_{\alpha+1}$ is transitive.
[/guided]
[/step]
[step:Handle limit stages by returning to an earlier stage]
Let $\lambda$ be a limit ordinal and assume that $L_\beta$ is transitive for every ordinal $\beta < \lambda$. We prove that $L_\lambda$ is transitive.
Let $x$ and $y$ be sets with $x \in y \in L_\lambda$. Since
\begin{align*}
L_\lambda = \bigcup_{\beta < \lambda} L_\beta,
\end{align*}
there exists an ordinal $\beta < \lambda$ such that $y \in L_\beta$. By the induction hypothesis, $L_\beta$ is transitive. Hence $x \in y \in L_\beta$ implies
\begin{align*}
x \in L_\beta.
\end{align*}
Since $\beta < \lambda$, we have $L_\beta \subset L_\lambda$ by the definition of $L_\lambda$ as the union of the earlier stages. Therefore $x \in L_\lambda$, proving that $L_\lambda$ is transitive.
[guided]
Let $\lambda$ be a limit ordinal, and suppose that every earlier stage $L_\beta$ with $\beta < \lambda$ is transitive. We want to prove that $L_\lambda$ is transitive.
Take arbitrary sets $x$ and $y$ such that
\begin{align*}
x \in y \in L_\lambda.
\end{align*}
The defining property of a limit stage is
\begin{align*}
L_\lambda = \bigcup_{\beta < \lambda} L_\beta.
\end{align*}
Thus membership in $L_\lambda$ means membership in some earlier stage. Since $y \in L_\lambda$, there exists an ordinal $\beta < \lambda$ such that
\begin{align*}
y \in L_\beta.
\end{align*}
By the induction hypothesis, $L_\beta$ is transitive. Applying transitivity of $L_\beta$ to $x \in y \in L_\beta$, we obtain
\begin{align*}
x \in L_\beta.
\end{align*}
Finally, because $L_\lambda$ is the union of all $L_\gamma$ with $\gamma < \lambda$, the inclusion $L_\beta \subset L_\lambda$ holds for this particular $\beta < \lambda$. Therefore
\begin{align*}
x \in L_\lambda.
\end{align*}
Since arbitrary $x \in y \in L_\lambda$ implies $x \in L_\lambda$, the limit stage $L_\lambda$ is transitive.
[/guided]
[/step]
[step:Conclude transitivity for every stage and for $L$]
By transfinite induction, $L_\alpha$ is transitive for every ordinal $\alpha$.
Now let $x$ and $y$ be sets with $x \in y \in L$. Since
\begin{align*}
L = \bigcup_{\alpha \in \operatorname{Ord}} L_\alpha,
\end{align*}
there exists an ordinal $\alpha$ such that $y \in L_\alpha$. The set $L_\alpha$ is transitive, so $x \in y \in L_\alpha$ implies $x \in L_\alpha$. Hence $x \in L$. Therefore $L$ is a transitive class.
[/step]