Thanks for the Info.
Okay, I am suspecting Canine Acne... What could be happening is inflammation of the hair follicles or could be contributed to a bacterial infection in that area. This type of acne or papules sometimes drain or are fluid -filled lesions that occur on the chin and lips. At home treament, you can use benzoyl peroxide to clean the area..however ensure the dog doesn't get any in her mouth. If the case begins to get severe, then it may need to be treated with antibotics and have the vet do a skin biopsy.
Here are 2 other possible issues that maybe happening if you start to see a cauliflower appearance in the lesions.
Squamous Cell Carcinoma - this is a common, malignant type tumor. One of the forms of this is a cauliflower-type appearance to the ulcerations to the lips or nose. A biopsy can be use to test this as well and usually a surgical approach is used to remove this tumor.
Warts (Cutaneous Papilloma)- these typs of growths can be caused by a virus. They usually look like light colored lesions which may have a califlower appearence. They can show up on the lips, tounge, inside of mouth and eyelids. This warts some times resolve themselves...if they are severe, however, the vet can choose to remove them via surgery.
Your best bet would probably be to pay a visit to the vet when you get a chance. Though it is not an emergency, I would get her in to make sure there is nothing bacterial any kind of infection in the mouth.
Let me know if this helps at all. Or let me know if you have any other questions.