He was located not far from the Allen Correctional Institution, from which he escaped with another inmate around 5:30 p.m. local time, according to authorities.
He fled the prison in Lima with Clifford Earl Opperud, 45, according to Lima police. Opperud is still on the loose, police said.
Lane, now 19, was convicted in a shooting rampage that killed three students and injured two others at Chardon High School east of Cleveland on Feb. 27, 2012.
Lane did not attend the school, but was a student at a nearby alternative school.
He was sentenced to three life prison terms. During his sentencing, Lane wore a white shirt on which "Killer" was written in large letters.
It is unclear how the prisoners managed to get away.
Lane's former attorney, Ian Friedman, issued a post on Twitter hours after the escape.
"#TJLane I've been asked whether he is a danger. Answer is no one ever wants to return to prison for a life sentence. Plus, case facts speak," Friedman tweeted.
A massive search had been conducted for the fugitives, police said. Both men were considered dangerous.
The Chardon Local School District said in a statement that officials were aware of the situation and that the safety of everyone was the top priority.
Chardon High School will be closed Friday, the district announced late Thursday night.
During the ordeal, "TJ Lane" was trending worldwide on Twitter.