A type of fake lesbian that likes to make out with girls and pretend to be bisexual but usually and almost exclusively date men. The term comes from the idea that a lipstick lesbian puts on her lesbianism as a party accessory like she puts on lipstick when she goes out. The original and punny definition is NOT just a feminine lesbian.
Guy 1: I saw Nicole making out with that other hot girl at the party. I didn't know she was a lesbian.
Guy: She is a lipstick lesbian and so she she just acts that way when she goes out.