I think he's referring to using the L* to create auto generated edge masks in the Detail panel...also note that sharpening (and luminance noise reduction) are applied to the luminance data only. I'm not 100% sure it's L* but I think it is.
Jeff,
Here's a way to do sharpening in luminance on an RGB image:
http://www.google.com/patents/US5793885I'm not saying that Lr does it that way, but you certainly don't
have to go to Lab to do luminance sharpening.
..so, I'm not sure how you would separate out the L* of L*a*b* if you don't actually convert to Lab, do you?
Starting with a pixel in linear PPRGB, multiply the red value by 0.288040, the green value by 0.711874, and the green value by 0.000086, and add the results together to form a quantity that we'll call Y. Convert from Y to L* by applying the appropriate non-linearity, which is mostly a cube root function with a straight line portion near zero.
If an approximation is sufficient, take 3/4 of the green value and 1/4 of the red value and add them together. Right-truncate to 8 bits, and use that to index into a 1D LUT to get L*.
[Added later: even more approximate, but even faster. Take the 7 MSBs of the green plane and the 5 MSBs of the red plane and use them to index into a 2Dx1D LUT that gives you L*. Or even cruder, take the 8 MSBs of the green value and use that to index into a 1D LUT that gives you L*.]
There are several options in between the above two [three] in both accuracy and computational complexity.
Jim