Margera, 39, refused to leave the Luxe Hotel bar on West Sunset Boulevard, the LAPD confirmed to Fox News on Wednesday.
A hotel staffer placed Margera under citizen's arrest, which officers helped facilitate once they arrived on scene.
The arrest occurred at 11:56 p.m.
Video footage obtained by TMZ shows Margera arguing with officers, who asked him not to make a scene and to simply exit the hotel's premises.
Margera is currently being held on $1,000 bail.
Reps for Margera, a skateboarder who came to prominence after starring in the "Jackass" series on MTV from 2000 to 2002, did not return Fox News' request for comment on his arrest.
The bar bickering occurred less than two weeks after Margera entered – and soon left – rehab in early August.
The former "Jackass" star sought help for alcohol addiction at the behest of his wife Nikki, his mother and Dr. Phil, whose name Margera got tattooed on his neck.
Margera last went to rehab in January 2019.
He also checked into treatment a year earlier after being arrested for driving under the influence, Page Six reported.
In September 2017, Margera's parents revealed that his "rock star" lifestyle spun out of control, leading Margera to drink instead of eating and speculating that the skateboarder also had bulimic tendencies.
Margera admitted at the time to abusing both alcohol and drugs.