Account lockout is a feature of Microsoft Windows security that locks a user account if a number of failed login attempts occur within a specified amount of time. It is not the feature of LAlarm. However LAlarm depends on Account Lockout, the security feature of Windows, for triggering a certain actions such as data recovery, data destruction, theft responses. So if you want to use data recovery, data destruction and theft response, you should able account lockout and its audit policy (detail is described in the manual).
If you want to enable account lockout on your computer, you should know the potential problems. You could lockout your computer by a mistake and unable to access your computer for some period of time. Yet worse, data recovery, data destruction and theft response actions will occur if you configured LAlarm in such way.
Here are account lockout resources: