Love joins Washington Wizards guard Bradley Beal, who has entered health and safety protocols, in dropping out of USA's original 12-man roster.
USA Basketball (USAB) announced on Friday that Denver Nuggets center JaVale McGee and San Antonio Spurs small forward Keldon Johnson have replaced the duo.
USAB said Love's withdrawal was due to "his ongoing injury recovery", having been returning from a right calf injury during the camp in Las Vegas where he did participate in exhibition games.
"I am incredibly disappointed to not be heading to Tokyo with Team USA," Love said in a statement released by Schwartz.
"But you need to be at absolute peak performance to compete at the Olympic level and I am just not there yet."
McGee averaged 7.3 points per game and 5.2 rebounds per game, shooting at 51.1 per cent from the field in the 2020-21 NBA season for the Nuggets.
Johnson, 21, averaged 12.8 points per game, 6.0 rebounds per game and 1.8 assists per game in the 2002-21 season for the Spurs.
Team USA are due to fly out for Tokyo on Monday, with their Olympics opener against France on July 25.