Rudin's theorem 1.11 states:
Suppose $S$ is an ordered set with the least-upper-bound property, $B \subset S$, $B$ is not empty, and $B$ is bounded below. Let $L$ be the set of all lower bounds of $B$. Then $\alpha = \sup L$ exists in $S$, and $\alpha = \inf B$. In particular, $\inf B$ exists in $S$.
I am having trouble understanding why $L \subset S$. This has to be the case so that we can invoke the LUB property to conclude that $\sup L$ exists in $S$. After a lot of searching, the answer seems to be that "$S$ is the universe; nothing exists outside of $S$." I'm struggling to understand why that follows from the problem. What if, for example, $S$ is the set $\mathbb{Z}$, $B$ is the positive integers, and $L$ is the set of all lower bounds in $\mathbb{R}$? That is, $L = (-\infty, 0)$. Surely, $L \not \in S$.
If we went a step further and defined $L$ as the set of all lower bounds of $B$ in $S$, the proof would make much more sense to me. Is that what Rudin, implicitly, means?
Simply the sentence 'Let $L$ be the set of all lower bounds of $B$.' should be implicitly understood as