In SCSI terminology, A LUN (logical unit number) represents an individually addressable (logical) SCSI device that is part of a physical SCSI device (called "Target"). An iSCSI environment emulates the connection to a SCSI hard disk. An iSCSI Target is like a connection interface, and LUNs are essentially numbered disk drives. When an iSCSI Target is connected by an iSCSI initiator (a client), all the LUNs mapped to the iSCSI Target are virtually attached to the client's operation system.
Therefore, Initiators can establish and manage file systems on iSCSI LUNs, as they would a raw SCSI or IDE hard drive.