1. Lamb is the meat of a baby sheep. (Mutton is the meat of an adult sheep)
2. The/A menu is a list of food in a restaurant. (Correct with 'the/a menu')
Sheep is one of the rare irregular plurals in English. So, it is both singular and plural.
There is a sheep outside. (Just 1)
There are many sheep outside. (More than one)
Other animals that can be both singular and plural are fish and deer.
a fish / lots of fish
a deer / lots of deer