n is some value depending on the size of the input, so if you have a look up table that is O(n), then that memory needs to be initialized somehow. If you have a fixed size lookup table then it is O(1), even if it is big.
What if you allocate a huge chunk of memory and only use a small part of it? For example, checking if a list of numbers contains duplicates using a boolean array.
If your algorithm requires O(n) memory, any O(1) amount of memory can never be enough, no matter how huge. That's the entire point of O notation.
And if your implementation of an algorithm allocates more space in the big-oh sense than it can actually touch (eg. O(n) space for O(log n) time or whatever), that's just a wasteful implementation. Doesn't make the algorithm itself require more space than it has time to actually use.
Heavily simplified due to caches etc. To the point where people sometimes measure in cache misses instead as that is usually what actually matters.