I have a MFT Olympus PEN E PL3 camera with the kits lens 14-42mm. I'm into scale models mostly 1:35 armor and would like to know what would be the best kind of lens for this camera for my hobby. Or is it more a matter of settings/skill than the lense itself?
Most likely, your best bet would be a macro lens, preferably one which can achieve 1:1 or greater magnification, which allows you to shoot from very close distances and still achieve focus. The focal length of the lens will determine your possible working distances from your subjects.
The main issue will be that when you shoot at very close working distances, you get a very thin depth of field which can cue the viewer as to the true scale of things. So, you may want to also look into focus-stacking and off-camera lighting techniques. Being able to add light to a scene lets you shoot with smaller aperture settings, and the nature/direction of the light.