Hello,
Welcome to the ehealthforum and I am really glad to help you out.
This lump seems like a sebaceous cyst. A sebaceous cyst is a closed sac occurring just under the skin which contains a "pasty" or "cheesy" looking substance called keratin.They may occur anywhere on body but scalp, ears, back, face, and upper arm, are common sites for sebaceous cysts.
I suggest you to get it evaluated from a dermatologist to confirm the diagnosis.
It is very difficult to precisely confirm a diagnosis without examination and investigations and the answer is based on the medical information provided. For exact diagnosis, you are requested to consult your doctor. I sincerely hope that helps. Take care.