'Preserve lookup table elements' options under the Report Data Options editor are shown below:

'Preserve lookup table elements' options under the VLDB Properties editor (in the report editor) are shown below:

There is NO difference between the 'Preserve lookup table elements' options under the VLDB Properties editor vs. the Report Data Options. They are exactly the same. Changing an option in one of the editors automatically reads the changes and is reflected in the other editor as well. The options are located in these two editors just for convenience. Choose from the following options:
The same property available in the project level VLDB property editor is applicable to all reports created within that project. However, report level settings take precedence over the project level settings.