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I was curious about something. I have LUKS FDE on my Ubuntu installation and discovered that using snappy packages creates a snap loop partition. I'm not really sure why this was added or what it exactly is. Will this partition encrypt and decrypt with the rest of the HDD? Will snappy mess with my HDD encryption?

Disks application showing loop device for snap

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It is a loopback mount. This type of mount is a "virtual" thing on your disk, and how some image types are read. It will not affect your encryption. Snap packages are squashfs images, and are loopback mounted, so they may be used.