appears to be small ulcers developing, but not painful. My lips feel very, very dry and uncomfortable to smile. I have never had anything like this before and I am very upset and worried it's herpes.
This sounds like cold sores. Cold sores are relatively common and they are caused by herpes simplex type 1. I do not think this is sun allergy as, if this is a photosensitivity reaction ,then it should involve other sun exposed areas of the body as well.
HSV type 1 may present as blisters and usually involves the inner lip. Just have this assessed by your physician. Herpetic cold sores usually resolve spontaneously. It may however recur under stress and other factors like extreme heat and poor diet.