Can light C editor compile onyl code or do i have to use the level editor and such.

I don't have the definitive answer, but... it is currently beta, so it looks like "File/Publish" is disabled. However, according to the manual, this would be the option to create your EXE.

Lite-C does not contain a level editor.

I dont need a level editor i just need a scripting engine. So i can just plain out script how i like it. So eventually could we just script?

Sure, if you want to manually place every object with code.