Question - What is a lookup table in database? where can we use these type of table? 
          
        
        Answer - 
        Lookup tables are like constraints which hold a value.  The content in the lookup tables dosen't change often, hence refered as lookup (reference). 
Example : Countries table 
Countries are not added on regular bases hence one can consider the table as a lookup table.  As and when needed in some other table the countries information can be fetched base on PK - Country-Code column. Eg - Emp_Per_Info.