Infinite-layer nickelates stand as a promising frontier in the exploration of unconventional superconductivity. Their synthesis through topotactic oxygen reduction from the parent perovskite phase remains a complex and elusive process. This study delves into the nano-scale effects of the topotactic lattice transformation within LaNiO2 crystals. Leveraging high-resolution scanning transmission electron microscopy and spectroscopy, our investigations uncover a panorama of structural alterations, including grain boundaries and coherent twin boundaries, triggered by reduction-induced transformations. In addition, our analyses unveil the formation of an oxygen-rich disordered transition phase encircling impurities and pervading crystalline domains and the internal strain is accommodated by grain boundary formation. By unraveling these nano-scale effects, our findings provide insights into the microscopic intricacies of the topotactic reduction process elucidating the transition from the perovskite to the infinite-layer phase within nickelate bulk crystals.