Does "Lookup Editor app" captures "Lookup Definitions" that we define for Lookup file in (settings -> lookup -> lookup definition)?
Not directly. When you click "New" (after Settings > Lookup > Lookup definitions), it allows you to select a "File-based" lookup. That file is the lookup which is visible under the Lookup Editor App.
See here: https://docs.splunk.com/Documentation/Splunk/latest/SearchTutorial/UseFieldLookups
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