I have read LDA and I understand the mathematics of how the topics are generated when one inputs a collection of documents.
References say that LDA is an algorithm which
The general rule that using the training data for evaluation might be subject to overfitting also applies to unsupervised learning like LDA -- though it is not as obvious. LDA optimizes some objective, ie. generative probability, on the training data. It might be that in the training data two words are indicative of a topic, say "white house" for US politics. Assume the two words only occur once (in the training data). Then any algorithm fully relying on the assumption that they indicate only politics and nothing else would be doing great if you evaluated on the training data. However, if there are other topics like "architecture" then you might question, whether this is really the right thing to learn. Having a test data set can solve this issue to some extend: