Your instructor is wrong. He/she said:
(WRONG) Take any total order $X$, and any $Y⊂X$ that is bounded above in $X$. Then we say that $X$ has the lub property iff $Y$ has a supremum in $X$.
But as Dave said in a comment, the correct definition of the property is:
Take any total order $X$. We say that $X$ has the lub property iff every nonempty $Y⊂X$ that is bounded above in $X$ has a supremum in $X$.
$\def\eq{\leftrightarrow}$
Notice the swap, and that your instructor missed out the "non-empty" condition! The first is of the form:
$\forall Y ( IsBoundedSubset(Y,X) \to ( LUB(X) \eq HasSupIn(Y,X) ) )$.
Whereas the second is of the form:
$LUB(X) \eq \forall Y ( IsNonemptyBoundedSubset(Y,X) \to HasSupIn(Y,X) )$.
They are not equivalent.
As for what it means, we can see how the correct definition applies to examples.
The integers $\mathbb{Z}$ with the usual ordering has the LUB property because any non-empty set $S$ of integers with an integer $m$ for an upper bound will have a maximum integer (since $\{ m-x : x \in S \}$ is a set of natural numbers and has a minimum).
The rationals $\mathbb{Q}$ with the usual ordering does not have the LUB property because the set $S = \{ x : x \in \mathbb{Q} \land x^2 < 2 \}$ is non-empty and has an upper bound of $2$ in $\mathbb{Q}$ but no supremum (lowest upper bound) in $\mathbb{Q}$. Why? Suppose there is such a supremum $c$ for $S$ in $\mathbb{Q}$. If $c < \sqrt{2}$, then let $d \in \mathbb{Q}$ such that $c < d < \sqrt{2}$ (by density of $\mathbb{Q}$ in $\mathbb{R}$), and so $d \in S$ contradicting the definition of $c$. Similarly if $c > \sqrt{2}$ then let $d \in \mathbb{Q}$ such that $\sqrt{2} < d < c$, and so $d$ is an upper bound for $S$ in $\mathbb{Q}$, contradicting the definition of $c$. Therefore $c = \sqrt{2}$, which is impossible since $c$ is rational.
The reals $\mathbb{R}$ with the usual ordering has the LUB property, which is probably the first example you've seen.
The interval $(0,1)$ with the usual ordering has the LUB property. Why? Take any non-empty $S \subseteq (0,1)$ that is bounded above in $(0,1)$. Let $m \in (0,1)$ be an upper bound for $S$ in $(0,1)$. Let $c = \sup_\mathbb{R}(S)$, which exists because $\mathbb{R}$ has the LUB property. Then $c \le m$ by definition of $c$. Also $c > 0$ because $S$ is non-empty and so has a positive element. Thus $c \in (0,1)$. Also any upper bound for $S$ in $(0,1)$ is also an upper bound for $S$ in $\mathbb{R}$. Hence $c$ is the lowest upper bound for $S$ in $(0,1)$. Therefore, since this holds for any given such $S$, we conclude that $(0,1)$ has the LUB property.