Hi,
An LED(Light Emitting Diode) is just a type of light that may be on a frame or somewhere on your design to help indicate a process.
An LCD(Liquid Crystal Display)Is usually a miniature in-grip type of displayed menu that allows visual option changes,and are sometimes easier to work with.Most applications that use LCD's also have game-timers,BPS rating,etc...
Most of the applications uses LCD rather than LED's which consumes more power than the LCD. Hence the LCD driver foundries are more and capable.
If you need more details, don't hesitate to contact me.
Regards,
N.Muralidhara
CRL-BEL