To dream of lipstick represents an aspect of your personality that feels superior or more deserving than others. Wanting to outdo or outperform others you feel are less important. Being "positiver" than someone else. It may be a sign that you or someone believes that they are smarter, stronger, richer, or better than someone else at something. It may also reflect a higher sense of maturity over others.
Negatively, lipstick may represent you or someone else that is inducing jealousy in others. It may also reflect conceit or arrogance. Believing it's impossible for you to ever lose or have to lower your standards.
To dream of putting on lipstick represents feelings that something about you gives you an edge over others. You may have more experience, resources, information, or physical superiority.
Example: A girl dreamed of noticing herself wearing lipstick in photographs she was looking at with her ex-boyfriend. In real life she was helping him get through a tragic death and wanted to appear to him as a more mature or "better person" who was capable of friendship despite their past. The dream reflected her wish to be remembered or viewed as a more supportive friend than his other friends.