Yes, "van" simply means "is" or "exists". In this case, your English sentence does not seem correct. Or it means something else.
"There is the lamp, above" - could meam "hey, look, there is the lamp: above". But then the Hungarian translation is something else: "Ott van a lámpa, fent".
The "there is" construction (for existence) can only be used with indefinite subjects in English:
There is A lamp in the room - Van EGY lámpa a szobában - existence
If you use "there is" with "the", with a specific subject, it means a location, not just existence:
There is THE lamp - Ott van A lámpa. - location
So that is probably why your answer was not accepted.
Thank you, I understand now. It is the hover hint that threw me off. I did not know that location is expressed differently in Hungarian. "The lamp is above." could have been about existence or location. You could ask "Where is the lamp?" and someone could answer "The lamp is above.", but if you had really been having trouble finding it and finally noticed it, then you could say "There is the lamp above." You could certainly put a comma between lamp and above. If it were in the ceiling, I would more commonly use ceiling light, but then we wouldn't need to say it was above, now would we?
Does it always have to be lamp, never light as in light fixture? In English a lamp is only the kind of light you put on a table, otherwise it would be a street light, or on the ceiling you'd call it a light fixture, or driving you'd stop at the traffic light or red light, etc. The picture for lamp looked like a street light or lamp post but it's never called just a lamp in English. In English you usually call everything a light. Turn off the lights, etc. I wrote "the light is above" and it marked it wrong. Culture thing? I'm a native English speaker from Canada.
"The lamp is above" seems like a strange way to say it in English. I gather that it's a literal translation though. Is this one of those instances where the word for "it" can be left out if it's the object in some languages, but with the same sentence in English, that wouldn't sound right? Could I add "it" to translate this?