[guided]We prove two facts at once because each one feeds the other. To show $L_\alpha \subset L_{\alpha+1}$, we want to say that an element $x \in L_\alpha$ is definable over $L_\alpha$ using itself as a parameter by the formula $u \in x$. But this only defines $x$ as a subset of $L_\alpha$ if $x \subset L_\alpha$, which is exactly transitivity. Thus we prove transitivity of each level and adjacent inclusion simultaneously.
For the base case, $L_0 = \varnothing$. The empty set is transitive because there is no $x \in \varnothing$ to check, and $\varnothing \subset L_1$.
Now let $\alpha = \gamma+1$, and assume $L_\gamma$ is transitive and $L_\gamma \subset L_{\gamma+1}$. We first show that $L_{\gamma+1}$ is transitive. If $x \in L_{\gamma+1}$, then
\begin{align*}
L_{\gamma+1} = \operatorname{Def}(L_\gamma).
\end{align*}
By definition, every element of $\operatorname{Def}(L_\gamma)$ is a subset of $L_\gamma$ definable over $L_\gamma$ with parameters from $L_\gamma$. Hence $x \subset L_\gamma$. The induction hypothesis gives $L_\gamma \subset L_{\gamma+1}$, so $x \subset L_{\gamma+1}$. This proves that $L_{\gamma+1}$ is transitive.
Next we prove $L_{\gamma+1} \subset L_{\gamma+2}$. Let $x \in L_{\gamma+1}$. Since we have just proved that $L_{\gamma+1}$ is transitive, every element of $x$ lies in $L_{\gamma+1}$, so $x \subset L_{\gamma+1}$. Consider the first-order formula
\begin{align*}
\varphi(u,p) \quad \text{means} \quad u \in p.
\end{align*}
When interpreted over $L_{\gamma+1}$ with parameter $p=x$, this formula defines exactly the subset $x$ of $L_{\gamma+1}$. The parameter is allowed because $x \in L_{\gamma+1}$. Therefore $x$ belongs to $\operatorname{Def}(L_{\gamma+1})$, which is $L_{\gamma+2}$. Since $x$ was arbitrary, $L_{\gamma+1} \subset L_{\gamma+2}$.
Now let $\lambda$ be a limit ordinal, and assume the two assertions hold below $\lambda$. If $x \in L_\lambda$, then by the limit definition
\begin{align*}
L_\lambda = \bigcup_{\gamma < \lambda} L_\gamma,
\end{align*}
there exists $\gamma < \lambda$ with $x \in L_\gamma$. By the induction hypothesis, $L_\gamma$ is transitive, so $x \subset L_\gamma$. Since $L_\gamma \subset L_\lambda$ by the same union definition, we have $x \subset L_\lambda$. Hence $L_\lambda$ is transitive.
Finally, if $x \in L_\lambda$, then transitivity of $L_\lambda$ gives $x \subset L_\lambda$. The formula $\varphi(u,p)$ meaning $u \in p$, with parameter $x \in L_\lambda$, defines $x$ over $L_\lambda$. Therefore
\begin{align*}
x \in \operatorname{Def}(L_\lambda) = L_{\lambda+1}.
\end{align*}
Thus $L_\lambda \subset L_{\lambda+1}$. This completes the simultaneous transfinite induction.[/guided]