LOD the way I understand it is Level Of Detail.
Basically, it's used to reduce processing needs and such by replacing the mesh of an object with a less detailed mesh when the player puts a certain distance between himself and the object.
I'm not sure what kind of role it plays in BL though, seeing as every weapon and vehicle is already pretty basic and does not usually bolster much detail in texture and such anyways. Specifically, I think you need to give the mesh a LOD of 100 so you can see the model mesh up to the point where the map's Sight Distance kicks in.
Again this is speculation, I'd be happy if anyone with more expertise could point any wrongs in my idea of the whole thing.