Lark supports, and recommends, writing and storing the grammar in a .lark file. We have syntax highlighting support in all major IDEs, and even in github itself. For example, here is Lark's built-in grammar for Python: https://github.com/lark-parser/lark/blob/master/lark/grammar...
The rationale is that it's more terse and has less visual clutter than a DSL over Python, which makes it easier to read and write.