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How does the VLOOKUP formula work?

How VLOOKUP works. VLOOKUP is a function to lookup up and retrieve data in a table. The "V" in VLOOKUP stands for vertical, which means the data in the table must be arranged vertically, with data in rows. (For horizontally structured data, see HLOOKUP).

Can I use a VLOOKUP formula in a merged cell?

No because merged A1:A3 = A1, there is no A2 or A3 with any value and all references to them will always return a zero, however a vlookup looks up in the leftmost column and returns its value from indexed columns to the right so even if it would be possible to use merged cells it wouldn't work

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