Intermediate/Coding representation for Levenshtein Distance
There's indeed some research in this vein for the edit distance with some positive and some negative results. (I might not be understanding the question precisely, so I'll try to answer questions I know to answer.)

Here's one interpretation: (I1) you want to compute, for each string A a set f(A) such that, for any two strings A,B, the edit distance ed(A,B) is equal to the symmetric difference between f(A) and f(B) (in some sense the opposite of intersection of the two sets). This question has been well-studied (though by far is not solved), and is known as the question of embedding edit distance into Hamming distance ($\ell_1$). In particular, achieving (I1) precisely is not possible, but is possible up to some approximation (i.e., we approximate ed(A,B) up to some factor):


Krauthgamer and Rabani prove that $\Omega(\log n)$ approximation is required ($n$ is the length of the strings);
Ostrovsky and Rabani prove that $2^{O(\sqrt{\log n\log\log n})}$ approximation is achievable.


Here's a slightly more liberal interpretation: (I2) we produce some sketch f(A) for each string A, and we estimate the distance ed(A,B) via some calculation on f(A), f(B) (i.e., not necessarily by taking the symmetric difference).  The question is to have f(A) to be much shorter than the length of the original string, $n$ (otherwise, one has a trivial solution by f(A)=A). This interpretation (I2) is more general than (I1) (=easier to achieve), though we do not know of any strictly better solutions. There's some partial progress, where the estimation of ed(A,B) is done from f(A) and B (i.e., one string, say B, is fully known).

There's surely more literature in this vein, but let me know first if this is anywhere close to what you meant.