A female homosexual whose gender identity is slightly to the femme side of neutral on the femme-butch continuum of gender presentation but whose appearance and preferences stop short of those of a "lipstick lesbian."
"But butch lesbians have had little to no representation on television in the US: Ellen's two "chapstick lesbian" sitcom characters are the closest we've come." (AfterEllen.com)
A lesbian who cares more about practicality than image. She really doesn't gravitate to the traditional images of "butch" or "femme" -- she does what she wants, and doesn't really care how she's seen.
I prefer Chapstick over lipstick because the former is actually useful. Chapstick Lesbian, baby.
A lesbian who falls somewhere between a lipstick lesbian and a bull dyke lesbian. Sporty, somewhat to very feminine, not into a lot of makeup (hence the chapstick) but you can still tell it's a girl.
That girl is really cute in a 'girl next door' kind of way. Wait is she holding that girl's hand? Oh, she's one of those chapstick lesbians.
A female who is bi-sexual or still sexually confused but will only 'make out' with the opposite sex. Usually they can be characterized as a 'lipstick lesbian' meaning they look and act very feminine. Many times, a chap-stick lesbian will only display homosexual behavior for shock value or to impress her peers.
Guy 1: "Dude, Sarah is so hot"
Guy 2: "Is she only into chicks now or what?"
Guy 3: "Naw, she's a chap-stick lesbian, go talk to her"
Somewhere between a dike and a lipstick lesbian
That Susan isn't such a dike, she's a chapstick lesbian.