Move the inner loop outside of the outer loop and then store the value generated in a Twig variable. Then run the outer loop supplying the variable between the <select>
tags. This way you only generate the inner loop once.
{% set options = '' %}
{% for attribute in attributes %}
{% set options = options ~ '<option>' ~ attribute.name ~ '</option>' %}
{% endfor %}
{% for item in items %}
<label>{{ item.name }}</label>
<select>
{{ options }}
</select>
{% endfor %}