This is possible, but it's a bit of a pain. One problem is that the popular themes cater to GUI Emacs users where you have 24-bit color depth. On the terminal this gets approximated to one of the available 256 colors, and this approximation is often not great. This makes themes on the terminal look weird sometimes.

With some work, you can enable 24-bit color support in TTY emacs, which solves this problem. Combine this with some work to either tweak or remove the more obnoxious LSP overlays and you can have a fairly good LSP experience on the TTY.