"The biggest thing I am confused about is how the professor got δ? Did he have to do the later work first and then went back and plugged in the answer he got?"
Your professor likely did some scratch work, starting with |x2-4|<ε, and then getting his result for δ.
"in the definition, it says that then |f(x)-ε|<L but we ended up getting |f(x)-L|<ε"
It should be |f(x)-L|<ε in the definition.