Yes, lip balms can make it worse -- they tend to promote even more touching and licking of the lip surface, which dries them out. Additionally, when the thin film of moisture from lip balm evaporates, it can dehydrate your lips even more.
In short, lip balms are a temporary fix that can help alleviate the discomfort, but ultimately makes it worse over time -- a great strategy for selling more lip balm!
Chapped lips? Drink water!
Still chapped lips? Check in on omega-3s and other skin-focused nutrients to make sure nothing's missing.
If none of the above help, it's possible the body is trying to express something deeper going on -- if the outside of the digestive system is upset, something might be upset on the inside as well!