The level editor uses the game engine Urho3D, so it uses Urho3D resources such as models and materials.
Entity types are defined using a defitions file. The definition describes things like what properties the entity has and how it’s represented in the editor. The game config file describes where the entity definition files are.
Texture search paths are set in the game config file.
The level editor automatically generates materials for textures using the material creator into a directory defined in the game config file.
Automatically creates an entity for Urho3D node objects.
Automatically strips any non-graphical components from the node object.
.xml files are search in directories set in the game config file.