Oh, my lip was sort of like that, but as I have thinner lips and the picture is small, I can't really tell! I do eat dairy, but I've heard some celiacs have a hard time tolerating it at the beggining of their diet :) !
Also, you said that now only your lower lip is peeling!! that means you are better, right? :) keep strong! vitamins can help you speed things up! Just make sure you get strict about CC!