So real, I can smell it!
From the Muppet fandom wiki, a little more about Ludo:
Ludo is a gigantic beast in Labyrinth, whom Sarah found being tortured by goblins. After she rescued him, he became one of her traveling companions.
Ludo looks monstrous, but has a gentle and playful nature, and is one of the few residents of the labyrinth who is not under Jareth's control. He speaks rudimentary broken English and refers to himself in the third person.
He also has the ability to summon rocks, from small stones to boulders capable of defeating an entire goblin army. This ability proved quite useful several times during the group's journey.
His name is likely derived from the board game, as a copy of it is stored on a bookshelf in Sarah's room.