A method of operation of a navigation system includes: determining an occupancy status with a capturing sensor based on detecting a passenger presence in real time; determining a lane availability of a lane type based on a current location; generating an access notification based on the occupancy status, the lane availability for traversing on the lane type; and updating the access notification with a control unit dynamically and in real time based on a change in the occupancy status, the lane availability, or a combination thereof for presenting on a device.