In a large saucepan, cook beef and onion over medium heat until meat is no longer pink. Add garlic; cook 1 minute longer; drain. Stir in the tomatoes, tomato paste, basil, oregano, pepper and bay leaf. Bring to a boil. Reduce heat; cover and simmer for 40-50 minutes or until thickened.
Meanwhile, cook noodles according to package directions; drain. Discard bay leaf from meat sauce. Stir in olives.
Spread a fourth of the sauce in a greased 13-in. x 9-in. baking dish. Top with three noodles and a third of the mozzarella and Parmesan cheese. Repeat layers. Top with remaining noodles, sauce and cheese.
Bake, uncovered, at 350° for 35-40 minutes or until bubbly. Let stand for 15 minutes before cutting. Yield: 12 servings.