I wanted to know if there is an established definition for canopy forming marine macrophytes versus turf forming species i.e. height or morphological criteria?
There's no set definition really as far as I'm aware. I would recommend Steneck & Dethier 1994 (Oikos) for a first read, maybe that'll lead you onto the right way.
It seems to me that canopy forming macroalgae is used for algae with large thallus and turf forming species is related to understorey macroalgae. Look also: Tait LW, Schiel DR (2011) Legacy Effects of Canopy Disturbance on Ecosystem Functioning in Macroalgal Assemblages. PLoS ONE 6(10): e26986. doi:10.1371/journal.pone.0026986