Very good question, jiggyfly.
Let's look closely at the story. For nowhere in this story is it said that God made Lazarus sick, nor does it say that God (let me grammatically odd) made Lazarus dead. No. Scripture clearly states that Lazarus was ill (v1). In v4 Jesus tells his disciples that this sickness will not lead to Lazarus' death (from this world), but that God will use this situation to bring glory to Himself, and through it Jesus will be glorified.
God is timeless. He knew Lazarus would fall sick, and that he would fall asleep (die). And he chose long ago to use this incident to bring glory. Scripture
does not say that God created this situation. It
does show that God used this situation for glory.
Look at verse 11:
John 11:11 (ESV)
11 After saying these things, he said to them, “Our friend Lazarus has fallen asleep, but I go to awaken him.”
Jesus says Lazarus has fallen asleep. Note this word in the Greek is 'koimao', which literally means 'to slumber'. This is why the disciples confusion. Jesus uses this in both verse 11 and 12. Jesus wanted to get across that he was not dead for good.
John 11:14-15 (ESV)
14 Then Jesus told them plainly, “Lazarus has died, 15 and for your sake I am glad that I was not there, so that you may believe. But let us go to him.”
Lazarus has died. Note that nowhere does Jesus say that he was made this way for Jesus to raise him; rather Lazarus died: God will use this to show His glory.
