Briefly, the question isn't as simple as you'd expect. However, some points:
1). This isn't limestone, but instead quick lime, or slaked lime, or burnt limestone. You can see more here:
http://en.wikipedia.org/wiki/Limestone#Uses and read what the links there go to, and what those links go to, until you understand, at least, that this is pretty complicated.
2). I don't know exactly what the white smoke is. This sort of fumeing is pretty common, in diverse applications. Briefly, the lime has gotten hot from reaction with water, some water has vaporized, and re-condensed like your breath on a cold humid day. Also, some of the lime dust may be mixed in.
3). Ah yes, here we are again, I've told you before -- we can determine how much the material can theoretically absorb, using stochiometry. We need a balanced chemical reaction. But if you're going to use it as an absorbent, there are more engineering concerns, for example, how to be sure the gas stream is piped so that the entire mass of solid is well exposed, but the gas still flows freely, and the outer surface of the solid isn't coated with reactant and then stops working. So although the academic determination lakes a bit of work, I can't be certain that its practical.
4). Again, limestone in nature isn't slaked or burnt lime. In fact, then reaction with water and CO2 turn lime
back into limestone. Unrelated, but it is true that limestone is attacked by acids in the environment, that's why we have limestone caves, and sinkholes.