Narrowly dispersed polyurethane (PU) nanocapsules containing lavender essential oil (LO) were fabricated by polyaddition of toluene diisocyanate (TDI) trimer with polyol using a phase inversion emulsification technique. The particle size distribution (PSD), surface morphology, structure, encapsulation parameters, release properties, and thermal stability of nanocapsules have been characterized using a laser particle size analyzer (LPSA), scanning electron microscopy (SEM), transmission electron microscopy (TEM), Fourier-transform infrared spectrum (FTIR), and thermogravimetric analysis (TGA), respectively. Experimental results demonstrate that the nanocapsules have a smaller size (ca. 268 nm), regular sphericity, uniform particle size (polydispersity index, PDI = 0.078), clear core−shell structure, and smooth surface. When the ratio of LO to TDI trimer is 5:10, the yield, encapsulation efficiency, and loading capacity of the nanocapsules can reach a maximum of 70.7%, 98.6%, and 64.8%, respectively. Furthermore, the release experiments showed that the cumulative release of LO from nanocapsules was only about 17% at room temperature and about 32% at 50 °C even after 20 days.