Start by heating the olive oil in a large pot over medium heat. Once hot, add the diced onion and sauté until translucent—about 5 minutes. Then stir in the minced garlic and cook for an additional minute until fragrant. Add the ground beef; cook until browned, breaking it up as you go. Drain any excess fat.
Add the diced tomatoes along with their juice and both cans of tomato sauce. Add one cup of water to thin it out slightly. Toss in the bay leaves, dried basil, granulated sugar, Italian seasoning, and salt. Let this simmer on low heat for about 30 minutes while stirring occasionally.
In a separate bowl, combine the whole milk ricotta cheese with grated parmesan cheese and season with dried basil, dried parsley, salt, and black pepper to taste. Mix until well combined.
Bring a large pot of salted water to a boil for the lasagna noodles. Cook according to package instructions until al dente; usually around 8-10 minutes. Drain and lay flat on a clean kitchen towel or lightly oiled baking sheet.
In a large baking dish (approximately 9x13 inches), start by spreading a thin layer of meat sauce on the bottom. Place three lasagna noodles over this layer followed by half of the ricotta mixture and a sprinkle of mozzarella cheese. Repeat with another layer of sauce, noodles, remaining ricotta mixture, then more mozzarella cheese. Finish with a final layer of noodles topped with remaining meat sauce and sprinkle that last bit of mozzarella over everything.