Greets
This is a problem I wanted to solve for a long time, and finally did some days ago. So I want to ask people here at MSE to show as many different answers to this problem as possible. I will offer a Bounty in two days, depending on the interest in the problem, and eventually increase it as it gets more voted. Of course, I will show my answer to this question to know whether it is correct.
Thanks
$\newcommand{\cl}{\operatorname{cl}}$ Theorem. Let $\langle X,\tau,\le\rangle$ be a LOTS; then $X$ is $T_5$.
Despite the sometimes finicky details, the idea of the argument is very simple. $V$ is the intersection of the open nbhds $V_H$ and $V_K$ of $H$ and $K$, respectively. It’s open, so we partition it into its open order-components. If $C$ is one of these components, let $H_C=\{x\in H:V_x\cap C\ne\varnothing\}$ and $K_C=\{x\in K:V_x\cap C\ne\varnothing\}$; we show that either $H_C<C<K_C$ or $K_C<C<H_C$. Then we pick a point $p$ in $C$ and contract the intervals $V_x$ that meet $C$ by intersecting them with $(\leftarrow,p)$ for $x<C$ and with $(p,\to)$ for $C<x$. This contraction removes $C$ from the intersection of the nbhds of $H$ and $K$, and since we do it simultaneously for all components $C$, we end up with disjoint nbhds $W_H$ and $W_K$ of $H$ and $K$.
As an immediate consequence we get that every LOTS $X$ is hereditarily normal: disjoint closed sets in a subspace of $X$ are separated sets in $X$. Thus, we have for free that every GO-space (generalized ordered space) is hereditarily normal.
Moreover, the argument is very easily modified to show that if $\mathscr{F}$ is a separated family of subsets of $X$, meaning that $F\cap\cl\bigcup(\mathscr{F}\setminus\{F\})=\varnothing$ for each $F\in\mathscr{F}$, then there is a pairwise disjoint family $\mathscr{U}=\{U_F:F\in\mathscr{F}\}$ of open sets in $X$ such that $F\subseteq U_F$ for each $F\in\mathscr{F}$, i.e., that $X$ is hereditarily collectionwise normal.