Hi @Nishanth Chakkere,
Per my research, URL files created in the document library cannot be edited. You could click Copy link to check the link of URL file.
Here is a similar issue with yours:
https://techcommunity.microsoft.com/t5/sharepoint/editing-a-link-in-a-document-library/m-p/207095
There is a workaround mentioned in the issue:
You have to sync the files, or open in explorer, and manually edit the file itself with text editor.
If the answer is helpful, please click "Accept Answer" and kindly upvote it. If you have extra questions about this answer, please click "Comment".
Note: Please follow the steps in our documentation to enable e-mail notifications if you want to receive the related email notification for this thread.