@confuse_upgraditi The Sugarcube will digitise and reproduce the analogue sound as best represented via the vinyl. The better the signal played through the cartridge to the 'Cube the better the sound out of the 'Cube. It only processes the abnormalities represented as the pops and clicks and negates them, as you know.
What a lot of responders have not realised is that your question does not involve storage to disk and its subsequent reproduction. You are using the 'Cube, a sound processor, to remove abnormalities on a vinyl record such as a scratch may give.
However, as stated before, the better the input to the 'Cube, the better the reproduction.
Ps. Love the Koala (I'm also from the land downunder)