Orissa High Court's Chief Justice Vineet Saran administered the oath of office to Lal at a special function held at Raj Bhavan here.
Chief Minister Naveen Patnaik and several other ministers were present on the occasion.
Earlier, Lal visited the Jagannath temple in Puri and offered prayers on Tuesday.
Lal was appointed Governor by President Ram Nath Kovind on May 25. The post had fallen vacant in March after S.C. Jamir completed his tenure and Bihar Governor Satya Pal Malik had been given additional charge of the state.
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