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I have everything installed under Lazarus 32bit Windows. When I first ran a test, I had a query on a form active with data on my grid within the IDE. I ran the program and the same data showed up within the running program. I attempted to make an edit but I received an error saying that the database was locked. I figured out that I needed to have the query closed in the IDE and I was able to edit the table.

I have another SQLite management utility program. I opened the database and attempted to edit a record in a different table with the Lazarus program still running. It failed due to the database being locked.

Is there a setting that is locking the database with an active query?

Such situation can appear when the database has the EXCLUSIVE locking-mode.
You can find more information about this database parameter at the SQLite web-site: http://www.sqlite.org/pragma.html#pragma_locking_mode .
Please, check the locking-mode of the database you are using.
If the locking-mode is NORMAL, please create a small sample that reproduces the problem including a test database, and send it to eugeniyz*devart*com.