Let $F \in H^{-1}$. If $\Lambda$ is bounded take $\kappa \ge 0$ and if $\Lambda$ is unbounded take $\kappa >0$. We will take the inner-product on $H^1_0$ to be
$$
(u,v)_{H^1_0} = \int_\Lambda\left( \nabla u \cdot \nabla v + \kappa uv\right).
$$
Using Riesz / the weak-solvability of $-\Delta u +\kappa u =F$ with Dirichlet BCs, we can find a unique $u \in H^1_0$ such that
$$
\langle F,v \rangle = \int_\Lambda \left(\nabla u \cdot \nabla v + \kappa uv \right) \text{ for all }v \in H^1_0.
$$
Let $\epsilon >0$. Since $C^\infty_c(\Lambda)$ is dense in $H^1_0$ we can find $u_\epsilon \in C^\infty_c$ such that
$$
\Vert u - u_\epsilon \Vert_{H^1_0} = \left( \int_\Lambda |\nabla u - \nabla u_\epsilon|^2 + \kappa|u-u_\epsilon|^2\right)^{1/2} < \epsilon.
$$
Then
$$
\langle F,v \rangle = \int_{\Lambda}\left[ (\nabla u -\nabla u_\epsilon) \cdot \nabla v + \kappa (u-u_\epsilon)v\right] + \int_\Lambda \left(\nabla u_\epsilon \cdot \nabla v + \kappa u_\epsilon v \right)
$$
for $v \in H^1_0$. Since $u_\epsilon \in C^\infty_c$ we can rewrite the last term as
$$
\int_\Lambda \left(\nabla u_\epsilon \cdot \nabla v + \kappa u_\epsilon v\right)= \int_\Lambda (- \Delta u_\epsilon + \kappa u_\epsilon) v = (-\Delta u_\epsilon+\kappa u_\epsilon,v)_{L^2} = \langle \iota (-\Delta u_\epsilon+ \kappa u_\epsilon), v\rangle.
$$
Thus
$$
\langle F - \iota(-\Delta u_\epsilon + \kappa u_\epsilon),v\rangle = \int_{\Lambda}\left[ (\nabla u -\nabla u_\epsilon) \cdot \nabla v + \kappa (u-u_\epsilon)v\right]
$$
and we can estimate
$$
\Vert F - \iota(-\Delta u_\epsilon+ \kappa u_\epsilon)\Vert_{H^{-1}} = \sup_{\Vert v \Vert_{H^1_0} \le 1} \langle F - \iota(-\Delta u_\epsilon+ \kappa u_\epsilon),v\rangle \le \Vert u - u_\epsilon \Vert_{H^1_0} < \epsilon.
$$
Since $\epsilon >0$ was arbitrary we deduce that $\iota L^2$ is dense in $H^{-1}$.