yes im going to unequipt his item before the battle despite that he will probably still be lower
i still have a few gym badges to go(4) and heracross is level 87
what move set should i use
stone edge(to replace its current mega horn)
either shadow claw or earthquake
oh yeah can you use other pokemon to switch out and heal as long as they dont attack
Also, keep Megahorn (its more powerful than Aerial Ace even when resisted), replace Aerial Ace with Stone Edge/Rock Slide (Rock Slide will OHKO Charizard, so it's the better option against Red with it's higher accuracy and PP), and EQ is decent (no Shadow Claw for Red, but you can use it in the interim for ghosts), but Swords Dance is a great move there too, as EQ isn't really needed for coverage, and it will let you sweep Red without worrying about not OHKOing anybody as long as you outspeed them. Also, Close Combat should be in your final moveset, BB is good for now b/c of PP issues.
I assume you are in Kanto already, so I dunno why you are fighting Lance again...use the power bracer on low level Pokemon, although you should have max EVs by now.
as for an item, I would equip Leftovers against Red to counteract the Hail so you don't die from it.