The British Paralympic Association (BPA) announced the selection is the result of late bi-partite slot allocated by the International Paralympic Committee (IPC).
Lane won a bronze medal on her international debut at the Para-Cycling Road World Championships in 2011.
Gareth Sheppard, British Cycling’s Paralympic Performance Manager, said: “It was very unexpected news.”
“We had applied for the place in March, and initially had been told that we hadn’t been awarded one.”
“Crystal had only narrowly missed out on initial selection, so it is fantastic to be able to give her the opportunity to compete in London. It really strengthens our team.”