This paper uses an information-theoretic lens to view the error bound of wireless local area network (WLAN) localization, which is recognized as one of the superior candidate localization techniques in the GPS-denied environment. Interestingly, we analogize the process of WLAN localization into one of information propagation in a parallel Gaussian noisy channel, and then derive the corresponding localization error bound from the channel capacity of the analogical information propagation system. Experimental results show that compared with the widely-known Cramer-Rao Lower Bound (CRLB), the proposed approach performs better in localization error bound estimation under most of the cases of different access point deployment and reference point calibration.