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Is this area the skin just below the lip line?
Is it dry and irritated?
Are your lips chapped as well?
If you are licking your lips, either consciously, or unconsciously (this happens when your lips are dry)---this can cause an irritated dry area of skin just around the lips. You might try treating your lips as if they were chapped.
Simply using a moisturizing and protective lip balm will most likely take care of the problem. One with sunscreen is also a good idea. Keep the lip balm in your pocket and apply it very often, on your lips and the reddened area as well. This should clear it up in a few days.
Make sure you are drinking enough water as well, since this is a common cause of dry lips.
When washing your face, do not use harsh soaps. A moisturizing soap, or a cleansing lotion are best.