Reviewed:
Sex education time: A "lipstick lesbian" is a feminine woman who loves other feminine women. A "femme" is a feminine woman who loves masculine women. Unfortunately, not all people who consider themselves to be lipstick lesbians agree with that definition. The characteristic on which there is agreement is that lipstick lesbians prefer to look like women -- that is, they tend to eschew the "butch" appearance.
In the present story the term seems to have a slightly different meaning. The two girls get together to study Freud and the non- lesbian girl discovers that maybe she's not so "non-" after all.