Steps to reproduce the issue
Create a component and add this code to edit layout:
<?php $this->set('show_options', 0) ?>
<?php echo JLayoutHelper::render('joomla.edit.params', $this); ?>
Expected result
No error and show edit page.
Actual result
Get this error message:

System information (as much as possible)
3.7.2
Additional comments
I'm not sure what is the usage of this variable so I didn't create PR to fix it.