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If god cast out the angel lucifer into the eternal lake of fire which he will reside forever and ever why would he be allowed to be in the human form on earth? Why shouldnt he still be in hell? Is he allowed to be out and let loose on the earth for some reason?
Yes he is because man has free will and would rather follow evil.
The Bible calls the demons the principalities and powers of the air.
Revelations explains about when he gets bound for eternity.
I am sure someone here can explain this better.
Lucifer (Satan, the devil) is a fallen angel, so could appear to someone just as any righteous angel could. He is not in Hell, has never been in Hell, but will be held in prison during the Millenium and then be released for a "short season" to try the inhabitants of Earth, and then be thrown into the Lake of Fire at the time of the Great White Throne judgment. He is allowed certain freedom for now to give all of us the opportunity to exercise our freedom of choice.