As my understanding your IR receiver's output pin connect with controller and led also connected with another pin of controller.When obstacle detect output of IR receiver is high or low.Suppose if not obstacle present, output is low and when obstacle detect, output is high.Read the status of output pin and based on high or low , turn on or off led and same time display on LCD.
for example, like this algorithm:
– Read the status of IR receiver pin
– If Low then led OFF and display on LCD
– else led ON and display on LCD
NOTE: if you don't know how to interfacing LCD with controller and how to display on LCD, first refer the LCD tutorials in engineersgarage.