L, the Lorentz transformation, is defined as a coordinate transformation. As such it has two indices. This coordinate transformation then acts on an index of a tensor.
Let's look upon it from a fundamental perspective. As a theoretical physicist you look at the fundamental building blocks of nature. These building blocks are particles and the forces between them, also mediated by particles. So it's particles everywhere. These particles are described by fields. These fields can be described by how their components change when you change your perspective as an observer. Think as an analogy about geometrical objects like points, lines, cubes, etc in 3-space. You could say that the more complicated the field transforms, the more indices it gets. Maybe you know about the concept of spin; well, there is a relation between the number and nature of indices a field has, and the amount of spin you can assign to it. Fields without indices are called scalars and have spin 0, fields with one index are called vectors and have spin 1, and on top of that you have half-integer spin fields, which have different kind of indices (called spinor indices). In the end it is just a matter of labeling.
Maybe it also helps to look at the physical interpretation of the energy-momentum tensor, a tensor with two indices; it describes the energy- and momentum flux of spacetime surfaces.
A Lorentz transformation with two upper indices is just a mathematical expression of the matrix product of a Lorentz transformation with a metric. That's (as I understand) all there is to it.