I need to know if there is a LCD o/p tool or a display tool in Keil uv-2 IDE? Will this be based on the Hitachi HD44780 LCD?
There is; and if you look in the Application Notes, you'll find it!
You may visit http://www.C51.de , where you will find a DLL that add an LCD to the simulation.
You may also visit http://www.jasys.de/prod_sw_e.htm, where you will find a DLL for graphical LCD simulation.