Stir together the water, sugar, and lavender buds in a small saucepan.
Bring toa simmer over medium heat. Once simmering, remove from heat and allow the mixture to steep for 5 minutes.
After 5 minutes of steeping, stir in the vanilla extract and food color (if using).
Strain out the lavender buds, squeezing any excess syrup out of the lavender as you strain it. Discard the lavender, and transfer the syrup to a syrup bottle. Store in the fridge for up to 2 weeks.