The letter L does indeed indicate Local.
It was designed to identify those who had qualified as an Instructor on a locally run course as opposed to those who had qualified on a central, nationally-run course at an ARP School and qualified with a Special Certificate who wore the badge with the letters ARPS. An example of the award of the ARPS qualification is attached.
In addition those centrally trained wore a badge with a gold coloured crown and edge, those locally trained wearing it with a silver coloured crown and edge.
These and many other ARP/CD badges are described and illustrated in my book "Doing Their Bit'; Home Front lapel badges 1939-1945".
Copies on Amazon or from the publisher, Sabrestorm.
Jon
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