Assuming Lexol knows what they're talking about, and that saying its an "aqueous emulsion" isn't just some sort of marketing hype, then yes, it is water based.
As for the confusion surrounding what an emulsion is...lyzing was closest.
An emulsion is a stabilized mixture of two non-miscable fluids, i.e. if two fluid are soluble in each other then you have a simple mixture not an emulsion. The classic example is an "oil in water" emulsion, but you can also have "water in oil" emulsions as well. Either way, the lesser component is dispersed in the carrier liquid by use of surfactants. To form an emulsion the two non-miscable components are added to one another and then agitated such that the lesser component becomes dispersed into tiny droplets within the carrier. A surfactant then "emulsifies" the solution by coating the tiny dispersed droplets which effectively stabilizes the droplets and stops them from coalescing and makes the emulsion stable.
Further, you can tell how small the emulsion droplets are and in some cases how concentrated an emulsion is by its color. Opaque white emulsions typically have a large particle size, while faintly opaque or pearlecent emulsions typically have a small particle size approacing 1um or less in size. A special subset of emulsions called micro-emulsions can even appear translucent because their particle size is small enough that visible light is unaffected passing through the solution. This only typically happens when the ratio of surfactant to dispersed component is extremely high as smaller particle size droplets have a significantly higher suface area per unit of volume and thus need more surfactant to stabilize the smaller droplets.
End nerd rant.