Lavorel, a 35-year-old newcomer to the event, was killed after his sidecar collided with a stricken vehicle right at the start of a three-lap race on Saturday afternoon.
The driver of the all-French Shock Factory, Cesar Chanel, was airlifted to hospital in critical condition after a major fire broke out when the machines collided.
A statement from the race organisers read: "The Isle of Man TT Races regrets to confirm that Olivier Lavorel, 35, from Sillingy, France was killed in an incident during the first Sidecar race of the 2022 Isle of Man TT Races.
"The accident occurred at Ago's Leap, just under one mile into the course, on the opening lap of the race. Olivier was competing in his first TT as a passenger to Cesar Chanel.
"Cesar was taken to Noble's Hospital by road and airlifted to Aintree Hospital in a critical condition.
"Olivier and Cesar were both newcomers at the Isle of Man TT Races and had been elevated from start number 39 to start number 21 after qualifying as the 15th fastest pairing, having posted an impressive lap speed of 108.420mph.
"An experienced pairing, Olivier and Cesar had taken numerous victories and podiums in the French F1 and F2 National Sidecar Championships.
"The Isle of Man TT Races pass on their deepest sympathy to Olivier's family, friends and loved ones, and our thoughts and best wishes are with Cesar at this time."
Lavorel is the second competitor taken by the deadly event this year, with British rider Purslow killed during an incident in Wednesday qualifying.
The 29-year-old was competing in his second ever TT and crashed heavily at Ballagarey corner after recording a personal best lap of 120.86mph round the terrifyingly fast street circuit.
Purslow's family released a statement in which they said it's how he would have wanted to go.
"He loved to ride, and he knew the risks but he loved racing since such a young age. He followed dad and his talent was immense, he learnt from the best. He was getting to his peak, having the best year ever with the Never Be Clever Racing team after so many years of doing it the hard way with Dad as a privateer.
"We are beyond heartbroken, in shock and utterly devastated," the Facebook post read.
"We are such a close family and this loss is so hard to bear. We wanted to say thank you to all the kind messages of support and love from everyone who knew him.
"For now, we are going to try and get some solace in the fact he always told us if he was going to go this would be the way he would want to, and that he would be smiling.
"He will be telling us all to stop crying, have a laugh and a drink for him, and celebrate his achievements. We love you Mark forever and always you were one in a million, always in our hearts."
Just a day earlier, another rider, Dave Moffitt, was also airlifted to hospital in Liverpool after a crash in lightweight qualifying and is said to be in a 'serious but stable condition'.
The two fatalities at the 2022 event take the 37.7-mile mountain course's death total up to 262 since its inception in 1911, with various events taking place alongside the TT.
The race has had a two-year absence from the motorsport calendar due to the COVID-19 pandemic, with the event running from May 29 to June 10.