It means "Shut up". It is made known by the song "Lip Up Fatty" by the band Bad Manners.
"Lip up fatty!"
The act of kissing another person.
Johhny and I were doing lip push ups for hours, my mouth is tired"
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An activity used to warm up ur arms, and mental ability before an event, in which, u take both arms and hand and point to the sky and scream "NIPLIP!", then procede to lick both index fingers and feel ur nips in as circular motion.
Jimmy Jones did his NIP-LIP-Warm-Ups before he ran the 5k run.
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Used to tell someone to shut up, to "be quiet"
Mark: I think I have a good car, it has automatic doors, and a -
Nathan: Lip up buddy, you don't know what you're talking about