It certainly is possible.
For the default races:
Go to your Steam folder, then find: Steam\steamapps\common\FE Legendary Heroes\data\English If you don't have Steam, then go to your Stardocks folder, I guess.
-Sovereigns are found in the CoreUnits.xml (search for Sovereign_[Name])
-Faction info is in CoreRaceTypes (starting units) and CoreRaceConfig (city names, colors, faction traits, alliance,...)
-Bloodtypes are located in CoreAbilities.xml
For custom races:
Go to My Documents\My Games\LegendaryHeroes
- Sovs are in the Unit folder: each unit you created is a separate xml file in there. Just find the one with the same name as the sov.
- Faction info is in the Race or RaceType folder (not sure)
All xml files can be edited with Notepad.