Yes you can train anything as long as the dog really understands what the clicker is for. So i would suggest don't take the clicker out with you until you've done lots of short sharp clicker sessions at home. You need to be absolutely spot on with your timing and if you click by accident at the wrong time, you MUST treat every click otherwise the dog loses trust that the clicker means he did something right - if you clicked the wrong behaviour that's your fault! If you don't treat, he will lose the conditioning for the clicker.
To begin with, don't expect the full behaviour when you start with the clicker. If you are trying to teach recall, for example, you wouldn't wait till the dog has fully come and sit by you to click and treat if he was brand new to it. You'll be using the clicker to shape his behaviour .
I would wait till my dog was doing something, like sniffing in the garden. (I wouldn't try this to start with, when he was really engrossed in something. Wait till he's just bimbling around.) Call his name, if he comes right to me then great - click and treat. If he doesn't come to me, but he turns his head to look at me, i would click. If he takes a step towards me, click. If the first time he comes to me, but the second time he just looks at me, both instances get a click. You have to click in that instant that he begins to show the behaviour you want - in this case your dog listening to you. Most dogs will be curious about what you are shouting his name for.
Build him up by training him at home over a period of days before taking the clicker on the walk. When i got my dog I would have a clicker and a little stash of treats in each room so i could do little 2-3 minute training sessions wherever we were in the house, just training all sorts of tricks etc - my dog got a rock solid understanding of the clicker and i got plenty of practise with my timing. You need him to learn that a click means he did something right and he's going to be rewarded, without distractions. You also need to be confident that you know exactly how to use it.
I'm not sure what your intentions are when you do take the clicker out but i think if your dog has a tendency to lunge and bark at other dogs, trying to get him to sit and watch you while the object of his desire is walking by is already setting him up to fail. I looked after a relatives dog with this problem and they were doing the sit quietly thing with no success. You're asking a lot of a dog in that scenario - he needs to ignore the other dog, sit down on a cold wet floor, and watch you but you're not as interesting as the other dog. give him another option.
What i did was teach at home, a "follow my finger" command - i had already taught the dog to come to me, and i taught him to touch my finger with his nose. so i started to walk, and asked the dog to touch my finger while i was walking along (in the house) using the clicker to condition him at each step of course. When he got it in the house, we tried it in the garden where there's more distractions. i added in the command "follow" and he learned that if i put my finger out and said follow, that meant i wanted him walking nicely alongside me with his nose close to my hand. When he got it in the house, i took him for walks when i felt it was unlikely we would see another dog, and we practised it out and about. I would practise a new skill at the end of the walk when he was a bit more settled and ready to learn. i made sure i had some cheese cubes, a VERY high value, rare treat for this dog, and the first time we saw a dog he wanted to bark at, i had already seen the dog before he did, and made sure he was on the opposite side of my body to the other dog. I would move to the other side of the road if necessary. Set your dog up for success!
Rather than make him sit and wait, and prolong the situation, i put my hand out and asked him to follow, moving briskly past the other dog. When he saw the other dog, and went to bark/lunge, i asked him to "follow" again, keeping my hand outstretched near his face to make it easy for him. I clicked and treated for him doing follow. It was our 2nd or 3rd dog when he was not at all interested in it, and just walked past nicely with his attention all on me. If he makes a mistake and he ignores you and barks and lunges anyway, it's no big deal - either his conditioning to the clicker isn't strong enough, your timing wasnt right, the treats weren't high value enough or you haven't done enough work at home. Every single walk is another learning opportunity. Just stay calm, move him past that dog, and then ask him to follow again, click and treat if he gets it right.
Clicker training is amazing fun, I've even trained cats with a clicker but you need to make sure you understand what its for and how to use it to get the best out of it. Hope this helps :)