I should have read the documention myself, it is intentional behavior:

"
LOOKUP
Returns the contents of a cell either from a one-row or one-column range. 
Optionally, the assigned value (of the same index) is returned in a different 
column and row. As opposed to VLOOKUP and HLOOKUP, search and result vector may 
be at different positions; they do not have to be adjacent. Additionally, the 
search vector for the LOOKUP must be sorted, otherwise the search will not 
return any usable results.
"

** Changed in: openoffice.org (Ubuntu)
       Status: Triaged => Invalid

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lookup() fails with words or non-alphabetical arrays
https://bugs.launchpad.net/bugs/246279
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