Wiki quote: "In physics, length contraction – according to Hendrik Lorentz – is the physical phenomenon of a decrease in length detected by an observer of objects that travel at any non-zero velocity relative to that observer."
According to Lorentz himself, yes, that's how he thought of it: the 'actual', 'spacial' 'whatever' gap between the constituent molecules decreased 'physically' in length. Even from the 'moving' object's measurement point of view. That is not the shortly later interpretation of the Lorentz contraction.
I read the first statement in wiki and already have questions. Now it says "detected by an observer of the object". Is this saying it is merely an observer effect, i.e., the object only contracts apparent to the observer who is seeing it with relative velocity; the object relative to itself does not contract?
Yes. That is the post-Lorentzian interpretation of Lorentz contraction.
If in fact Lorentz contraction states that an object actually shortens:
Is the general explanation that space is the introduced substance that contracts with the implication that the object shortens without changing it's internal material characteristics (other than space if that is considered an intrinsic property of matter)?
As shown above 'Lorentz contraction' has two different interpretations. It is universally accepted that Lorentz' interpretation was wrong, so the conditional fails.