How does the effect of Lucky Dodge interact with other effects that modify how much damage a defending character would take?
[Source: WotC]
If there are multiple effects trying to modify how much damage one of your defending characters would take, you may apply those effects in any order you choose. If applying such an effect means your character would take an even amount of damage, you don't reveal Lucky Dodge.
If I have 1 damage remaining before a character is KO'd, will Lucky Dodge always work because it can only take 1 damage?
[Source: Aequitas]
No. A character takes whatever attack damage is applied to it, regardless of how much damage remains to KO the character. Lucky Dodge works on the attack damage being applied to the character, not the actual damage needed to KO them.