I'm quite certain Larry wasn't in the original Christmas story. The original Christmas story mainly involves characters like Mary, Joseph, the baby Jesus, the shepherds, and the three wise men. There's no mention of anyone named Larry in the traditional accounts of the nativity.
Larry in the Christmas story could be anyone really. If it's a local Christmas story, he might be a local hero or a character based on someone in the community. He could be a jolly fellow who spreads Christmas cheer, like singing carols around town or helping decorate the town square for Christmas.
I'm not sure if there was a character named Larry Novak in 'A Christmas Story'. I don't recall such a name from the movie. It could be a relatively minor character or perhaps not in the movie at all.
I'm not sure who exactly 'larry' is in the Christmas story without more context. There could be many characters named Larry in different Christmas - themed stories. It might be a local character created for a particular community's Christmas narrative, or perhaps a less - well - known character in a more widespread Christmas tale.
Larry could be a character within the story. Maybe he's a friend of the main character, someone who participates in the Christmas - related events in the town. For example, he could be part of the school gang that gets into various adventures during the Christmas season, like going to see the Christmas displays or getting into snowball fights.