No, I honestly don't think it's possible due to Skyrim not supporting a hardware mouse cursor. The way I understand this is that skyrim draws its own mouse cursor and then hides the windows mouse cursor, which is the cursor lookupper uses. A potential workaround would be if the windows mouse cursor would also be displayed. This is a pretty common bug that happens sometimes, as seen here:
https://www.youtube.com/watch?v=frXR4LSZn08
When this happens the second mouse cursor visible is the ACTUAL windows mouse cursor, and if you use that mouse cursor to indicate what lookupper should translate, it works. Unfortunately skyrim hides the windows mousecursor by default and I don't think there's any way to show it, except for encountering this bug. I'm sure there's a way to make it happen, but people normally go to great lengths to AVOID this second mouse cursor, since it's generally quite annoying.
I've found a workaround however, though it's not ideal, and perhaps it only works because I have two monitors:
- Make sure the mouse cursor (the windows one, not the skyrim one) is on the monitor you're running Skyrim (this can be achieved by just moving the mouse towards that window. NB: This mouse cursor is made INVISIBLE by skyrim while it's running, so you don't know where it actually is, but you'll realize it's on the wrong monitor if you click CTRL-D and it highlights whatever's on the other monitor instead of what's in the skyrim window).
- Click CTRL-D, this will highlight all texts in the skyrim window
- Alt tab to display mouse cursor. Sometimes you have to move your mouse to the other monitor and do a left click or right click to make the mouse cursor display.
- Now, because lookupper overlay is on skyrim, mouse cursor will display when you bring it back, now you can use lookupper on the currently visible words.
It's not great, but once you get the hang of it it's surprisingly fast.