Barriers have been erected around the hole, which has been temporarily filled in, at Burnley Road, Cliviger, and traffic lights have been installed to enable repairs.
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A Lancashire County Council spokesman said: “We inspected what was originally thought to be a pothole in Burnley Road in mid-July, however, before we had the chance to fix it, we received another call from a member of the public to let us know that it had turned into a sinkhole overnight.
“We immediately put up barriers to secure the area and have now carried out further investigations and it appears to have been caused by a culvert collapse under the road.
“We have backfilled the hole temporarily while we plan the necessary repairs.
“The temporary traffic lights will be required until this is completed. We are sorry for the disruption.”